Aggregated News From Investment Management Regulators

Public Consultation on the Cabinet Office Order to Partially Amend the Regulation for Enforcement of the Insurance Business Act

Report/Flag

Please complete the required fields.



 In order to simplify the application procedure for permission necessary for concluding insurance contracts with foreign insurers without a branch office, etc. in Japan, the Financial Services Agency (“FSA”) has now launched a public consultation on the Cabinet Office Order to Partially Amend the Regulation for Enforcement of the Insurance Business Act.

1. Key Points of the Amendment

 At present, reform into attractive financial and capital markets that compare favorably with those overseas and development of an environment to attract advanced foreign human resources have been strategically promoted to work on various measures as an all-Japan effort to realize a globally open international financial center. In that respect, globally operating corporations are considered to have the need to provide insurance of companies operating insurance business, etc. in their home countries to employees who have been dispatched from overseas and working in Japan. In order to realize such need, when concluding new insurance contracts with those companies operating insurance business, etc. (assuming the case of foreign insurers without a branch office, etc. in Japan) in which employees working in Japan are designated as the insured persons, the corporations concerned need to implement the application procedure for permission in accordance with the following provisions of the Insurance Business Act(Note).

[Required procedures of the Insurance Business Act]
Based on Article 186, paragraph (2) of the Insurance Business Act, those who intend to apply to foreign insurers without a branch office, etc. for insurance contracts pertaining to any persons with an address or residence in Japan or property located in Japan, or vessels or aircraft with Japanese nationality, need to obtain the permission of the Prime Minister before the application is made in principle.
In addition, in order to apply for the permission, if the policy conditions are stated in a foreign language, the translation of the whole of those policy conditions need to be submitted (Article 2 and Article 117, paragraph (2), item (ii) of the Regulation for Enforcement of the Insurance Business Act), and if a corporation intends to conclude a group insurance contract in which the corporation is designated as the policyholder and its employees as the insured persons, the full names and addresses of individual employees need to be stated in a written application (Form 9 and 10 of the Regulation for Enforcement of the Insurance Business Act).

(Note) Since Article 186, paragraph (1) of the Insurance Business Act prohibits to “conclude” an insurance contract, if the insured persons of the insurance contract do not include “persons with an address or residence in Japan” when concluding an insurance contract, it does not violate Article 186, paragraph (1) of the Insurance Business Act even if the insured persons are dispatched to Japan and become “persons with an address or residence in Japan” after the conclusion. However, when the insurance contract concerned is to be renewed with “persons with an address or residence in Japan” being included the insured persons, etc., the permission provided for in paragraph (2) of the said Article may be required.

 In order to simplify the procedure concerned, this revision limits the extent to which Japanese translation of accompanying documents required when applying for permission pertaining to Article 186, paragraph (2) of the Insurance Business Act is required, and for specific life insurance contracts in which a corporation is designated as the policyholder and its employees as the insured persons, eliminates the requirement to state the full names and addresses of the insured persons in a written application, etc.

Cabinet Office Order to Partially Amend the Regulation for Enforcement of the Insurance Business Act (Draft)

2. How to Submit Comments

 Please send your comments by email, making sure to include your name, address, and company/organization name by 18:00 (JST), Wednesday, March 17, 2021.

 The FSA may disclose your name or company/organization name as well as comments it received if so requested. Please indicate at the beginning of your comment if you wish to be anonymous in the case of such disclosure.

The FSA may respond to similar comments all together. It should be noted that the FSA will not respond to each person who submits comment individually.

Email address: [email protected]

This news item was originally published by the Financial Services Agency (FSA JP). For more information, see the Source Link.

Regulator Information

Abbreviation: FSA
Jurisdiction: Japan

Recent Articles

SEC Charges TradeZero America and Co-Founder with Deceiving Customers about Meme Stock Trading Halts

The Securities and Exchange Commission today charged broker-dealer TradeZero America Inc.

Richard R. Best Named Director of Division of Examinations

The Securities and Exchange Commission today announced the appointment of Richard R. Best as Director of the Division of Examinations, effective immediately.

Pension Drawdown Advisory Centre

We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Get the latest from Regulatory.News in your inbox!

×