Ten major industry bodies
representing the interests of life insurers, general insurers and
reinsurers in the US, Europe and Asia have joined forces in
condemning the Japanese government’s stance on state owned Postal
Life Insurance Service, or Kampo.
The move follows a government
cabinet decision on 30 April this year approving new legislation
that contemplates legal and regulatory exemptions for Kampo from
laws applying to private sector companies.
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In addition, the industry bodies
object strongly to other aspects of the cabinet decision which
would permit Kampo to enter new business areas that they believe
will greatly expand Kampo’s market reach.
In addition the bodies stressed
that Kampo already enjoys other advantages over private insurers
such as special tax exemptions.
American Council of Life Insurers president and CEO Frank
Keating said: “Frankly, in spite of tremendous domestic criticism
and numerous global messages from other governments and from
private sector participants, Japan has not responded to those who
have appealed to it to live up to the GATS [General Agreement on
Trade in Services] commitments it has made.”
