TOKYO -- Japan Post Insurance has applied for approval to enter the reinsurance business, part of an effort to diversify sources of earnings.
The company has filed with the Ministry of Internal Affairs and Communications and the Financial Services Agency to reinsure other insurers' policies sold at post offices. These include term insurance for corporate managers that is offered by Nippon Life Insurance, Dai-ichi Life Insurance and six other big players, as well as cancer policies from American Family Life Assurance, or Aflac.
Japan Post Insurance will decide whether to reinsure such policies based on individual negotiations with providers.
The new business is also seen reducing payout risks, now concentrated in the mainstay endowment and whole-life insurance operations. Reinsuring against cancer and other risks would help curb the risk of having to make large lump-sum payouts.
The government's postal privatization committee said in a December report that deregulation to let Japan Post Insurance launch reinsurance business should be a priority.
Japan Post Insurance has also filed for approval to offer existing customers free telephone consultations on medical care, eldercare and tax issues.