U.S. continues push for fairness in Japanese insurance market

A key U.S. trade representative has told Japanese officials about his concerns over unfair treatment U.S. insurers complain will occur if a proposal from Japan Post Insurance is approved in the country.

Japan flagU.S. Trade Representative Ron Kirk recently called on Japanese officials to address the issue, which he considers a serious concern, according to the American Council of Life Insurers.

At issue is the handling of Japan Post Insurance’s plan to offer products that would compete with so-called Third Sector products offered by U.S. companies. The JPI products would not be required to meet the same regulatory and licensing standards imposed on U.S. insurers, as well as all other private market insurers. If the proposal were approved, JPI also would have preferential access to the 24,000 government-owned post office outlets included in the Japan Post Network, according to ACLI.

The U.S. association, representing 94% of U.S. life insurance companies, has been pushing for “a level playing field” for U.S. companies competing with JPI. The group said it was pleased with Kirk’s comments.

“His comments reassure the U.S. life insurance industry that the U.S. government values a level playing field for U.S. based insurers operating in Japan, and continues to work arduously on the issue,” ACLI President and CEO Frank Keating said in statement.

He noted that the Japanese market is one of the largest in the world. “U.S. providers have demonstrated they can successfully offer innovative products to the Japanese people,” Keating said.

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