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Prudential Life Japan Discloses ¥31.4 Billion Sales Misconduct; President to Resign

A commission-heavy sales culture with weak internal reporting enabled the misconduct.

Overview

  • The insurer said 107 current and former sales employees improperly took money from about 500 customers, totaling roughly ¥31.4 billion, following an internal probe disclosed on January 16.
  • The company reported the findings to Japan’s Financial Services Agency and announced its president will step down on February 1 after issuing a public apology.
  • Misconduct included deceiving customers to obtain funds and borrowing money without repayment, with examples such as false guarantees of profits and requests to finance purported investments.
  • Company materials indicate that about ¥22.9 billion remains unpaid to customers from the improperly obtained funds.
  • Asahi Shimbun reporting links the cases to a performance-based “Life Planner” model with 4,329 sales staff as of April 2025 and notes sparse internal reporting that points to governance gaps.