Japan Post Insurance : (Update on the Previous Disclosure) Progress of the Business Improvement Plan

UNOFFICIAL TRANSLATION

Although Japan Post Insurance pays close attention to provide English translation of the information disclosed in Japanese, the Japanese original prevails over its English translation in the case of any discrepancy.

March 15, 2022

Company name: JAPAN POST INSURANCE Co., Ltd.

Representative: SENDA Tetsuya, Director and President, CEO, Representative Executive Officer

Stock exchange listing: Tokyo Stock Exchange First Section (Code Number: 7181)

(Update on the Previous Disclosure) Progress of the Business Improvement Plan

JAPAN POST INSURANCE Co., Ltd. ("Japan Post Insurance"; Chiyoda-ku, Tokyo; SENDA Tetsuya, Director and President, CEO, Representative Executive Officer) is hereby announcing that it submitted "Progress of the Business Improvement Plan (as of the end of February 2022) " based on the business improvement order (December 27, 2019), to the Financial Services Agency of Japan, today. The summary of the Progress of the Business Improvement Plan is described in the attachment.

An announcement will be made promptly if further related matters due for disclosure arise.

Attachment

Progress of the Business Improvement Plan

1. Results of the investigations of policies by Japan Post Insurance

1. Status of the investigations of specified rewriting cases
   In regard to the investigations of specified rewriting cases, we confirmed solicitation

circumstances at the time of enrollment and customers' intentions about reinstatement by letters, phone calls and home visit to approximately 156 thousand customers. We finished responding to customers as of the end of March 2020, except for cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including the above cases that could not be finished due to reasons attributable to customers.

1. Status of the sales personnel investigations in connection with the investigations of specified rewriting cases

In regard to the sales personnel investigations in connection with the investigations of specified rewriting cases, we have completed the review of sales personnel investigations except for cases which we cannot investigate due to reasons such as salesperson's sick leave. We have identified 415 sales personnel who had violated laws and regulations and 2,215 sales personnel who had violated internal rules. Also, we have taken disciplinary actions in the form of termination of solicitation operations against 76 personnel (including 13 personnel* who are involved in other cases and 47 retired personnel subjected to penalties equivalent to termination of solicitation operations), suspension of solicitation operations of 1 month to 6 months against 1,002 personnel, suspension of solicitation for 2 weeks or 3 weeks against 1,550 personnel and undetermined disciplinary actions in order to allow for appeals against 2 personnel.

• 10 of 13 personnel who are involved in other cases, are involved in the portion of investigations of multiple policies which have been implemented since 2019, and the other

3 of 13 personnel are involved in the cases which have been found out from customers' voices.

1. Status of the investigation of all insurance policies
   In the investigations of all insurance policies, we sent notification documents with reply cards

to approximately 19 million customers to confirm their intentions and received over 1 million replies. We completed responding to customers as of the end of March 2020, except for cases that could not be finished due to reasons attributable to customers. We continue responding to customer requests, such as the requests for compensation for disadvantages experienced, including those that could not be finished due to reasons attributable to customers.

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1. Status of progress of additional investigations of all insurance policies

• Status of progress of investigations of multiple policies
  In regard to investigations of multiple policies, we finished responding to customers, except

for the cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including cases that could not be finished due to reasons attributable to customers.

We are making progress in the investigation of the customers who are to receive priority responses (897 policyholders)*1 from February 2020 and other customers (5,532 policyholders)*2. 6,425 customers (100%)*3 have confirmed their policy coverage, as of February 28, 2022. Of this number, 2,818 customers (44%) have requested compensation for their policies, and we have finished compensation for 2,810 customers (44%).

*1. Customers who have applied for 15 or more policies, of which half or more have been cancelled, in the last five years (from April 2014 to March 2019; the same hereinafter).

*2. Customers who have applied for 10 or more policies, of which 30% or more have been cancelled, in the last five years.

*3. Including the number of customers to whom we resent letters for reconfirming.

• Status of progress of Investigations other than the above investigations of multiple policies
  In regard to the investigations other than the investigations of multiple policies, we have contacted customers who have policies with high insurance premiums or who had changes of the insured or type of insurance when enrolling in new policies through visits by staff of Japan Post Insurance or sending letters explaining policy status to confirm the policy coverage, in proportion to the amount of premiums and the number of times policies were rewritten. We have completed responding to customers, except for cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including cases that could not be finished due to reasons attributable to customers.
  We have made progress in the investigation in regard to the customers who have paid monthly premiums of 200,000 yen or more (5,103 policyholders)*1. 5,103 customers (100%)*2 have confirmed their policy coverage. Of this number, 2,002 customers (39%) have requested compensation for their policies, and we have finished compensation for 1,993 customers (39%), as of February 28, 2022.
  In regard to the investigation of the customers who had multiple changes of the insured or the type of insurance and enrolled in new policies (2,650 policyholders)*3,4, 2,647 customers (100%)*2 have confirmed their policy coverage. Of this number, 851 customers (32%) have requested compensation for their policies, and we have finished compensation for 846 customers (32%), as of February 28, 2022.
  Also, we have made progress in the investigation in regard to the customers who have paid monthly premiums of 100,000 yen or more (14,059 policyholders)*5. 14,051 customers

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(100%)*2 have confirmed their policy coverage. Of this number, 1,248 customers (9%) have requested compensation for their policies, and we have finished compensation for 1,229 customers (9%), as of February 28, 2022.

In regard to the investigation of the customers who had a single change of the insured or the type of insurance and enrolled in a new policy, and the customers who used the policy rewriting system to shorten the maturities of existing contracts (32,814 policyholders)*6,7,8, 32,795 customers (100%)*2 have confirmed their policy coverage. Of this number, 1,274 customers (4%) have requested compensation for their policies, and we have finished compensation for 1,262 customers (4%), as of February 28, 2022.

In addition, we sent notification documents with reply questionnaires again to customers who had not replied on July 30, 2020.

*1. As of December 2019, policyholders aged 65 or older who have paid monthly premiums of 200,000 yen or more, and have had at least 1 policy which was cancelled in a short period thereafter during the period from April 2014 to December 2019.

*2. Including the number of customers to whom we resent letters for reconfirming.

*3. In the last five years, cases where sales personnel led the policyholders to change the insured at new enrollment without a change in policyholder, but the new policy was cancelled multiple times in a short period thereafter.

*4. Cases where sales personnel led customers to repeat rewriting insurance ⇔ annuity multiple times.

*5. As of December 2019, policyholders aged 65 or older who have paid monthly premiums of 100,000 yen or more, and have had at least 1 policy which was cancelled in a short period thereafter during the period from April 2014 to December 2019.

*6. In the last five years, cases where sales personnel led the policyholders to change the insured at new enrollment without a change in policyholder, but the new policy was cancelled at once in a short period thereafter.

*7. In the last five years, cases where sales personnel led customers to rewrite from annuity to insurance.

*8. Cases where sales personnel led customers to shorten the maturity of existing policies and apply for a new policy, but the underwriting of the new policy was declined.

1. Status of the sales personnel investigations in connection with the additional investigations of all insurance policies and other investigations
   In regard to the sales personnel investigations in connection with the additional investigations of all insurance policies and other investigations, we have completed except for cases which we cannot investigate due to a salesperson's sick leave and so on. We have identified 920 sales personnel who had violated laws and regulations and 230 sales personnel who had violated internal rules, as of February 28, 2022.
   Meanwhile the portion of investigations of multiple policies which have been implemented since 2019, we have completed and have identified 86 sales personnel who had violated laws and regulations.
   In addition to the above, we have executed for investigations to 292 sales personnel who have problems that they are related to cases including serious complaint, and to their joint sales personnel. Of this number, we have identified 39 sales personnel who had violated laws and regulations and 9 sales personnel who had violated internal rules as of February 28, 2022.

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We now consecutively investigate a cumulative total of 16,278 sales personnel by letters who are not included in prior investigations. Through such activities, we have confirmed the existence of problems in sales process by sales personnel answers. We have executed for investigations to 43 sales personnel who answered that their sales process had problems and to their joint sales personnel. Of this number, we have identified 19 sales personnel who had violated laws and regulations and 2 sales personnel who had violated internal rules as of February 28, 2022.

(6) Follow-up support activities to recover customer's trust

In addition to the above cases being investigated, as the support activities to recover customers' trust and to confirm policy coverage, we have carried out the confirmation activities for 12,104 customers who experienced policy rewriting since April 2019. We have completed responding to customers, except for cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including cases that could not be finished due to reasons attributable to customers.

12,093 customers (100%)* have confirmed their policy coverage. Of this number, 4,266 customers (35%) have requested compensation for their policies, and we have finished compensation for 4,243 customers (35%) as of February 28, 2022.

We also have conducted these activities for 34,201 customers with whole life insurance where the customer and the insured are different. We have completed responding to customers, except for cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including cases that could not be finished due to reasons attributable to customers.

34,175 customers (100%)* confirmed their policy coverage. Of this number, 1,593 customers (5%) have requested compensation for their policies, and we have finished compensation for 1,585 customers (5%) as of February 28, 2022.

And, we have carried out the confirmation activities for 9,907 customers with policies that were cancelled and rewritten after the payment period had ended. We have completed responding to customers, except for cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including cases that could not be finished due to reasons attributable to customers.

9,903 customers (100%)* confirmed their policy coverage. Of this number, 410 customers (4%) have requested compensation for their policies, and we have finished compensation for 408 customers (4%) as of February 28, 2022.

* Including the number of customers to whom we resent letters for reconfirming.

Through these support activities, we are listening carefully to customer's opinions and requests. We constantly review the details of the annual documentation "Notification of Policy Coverage" which we send to each customer. From October 2020, we have improved descriptions in order

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