Prudential Life Insurance extended its suspension of new policy sales in Japan by 180 days to early November as it works to address misconduct involving employees, Nikkei reported Thursday.
The insurer said more than 100 current and former staff received about 3.1 billion yen from customers through improper means. The halt on sales has been in place since early February, according to the report.
Japan's Financial Services Agency has started an on-site inspection of the group's local holding company, reviewing governance and compliance, the report said.
Prudential Life plans changes, including clearer roles for executives and branch managers and a shift away from commission-based pay for sales staff. Compensation will be linked more closely to factors such as policy retention and compliance, according to the report.
Complaints are also being reviewed at affiliate Gibraltar Life Insurance, with groupwide cases reaching roughly 700. The parent company expects the extended suspension in Japan to reduce pre-tax adjusted operating income by as much as $575 million this year, the report said.
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