Japan Financial Services Agency launches consultation on draft revisions to supervisory guidelines for small-amount and short-term insurers

The Japan Financial Services Agency published draft partial revisions to the Comprehensive Supervisory Guidelines for Insurance Companies, focusing on the separate booklet for small-amount and short-term insurance companies, and opened the proposals for public comment. The draft aims to reflect recommendations on insurers’ claims management and business promotion frameworks, including collaboration between insurance agents and insurance intermediaries, and to clarify the supervisory handling of co-insurance contracts used by small-amount short-term insurers. The proposals draw on recommendations in the Expert Meeting on Structural Issues and Competition in the Non-life Insurance Industry (report published 25 June Reiwa 6) and the Financial Services Council’s Working Group on Systems and Systems for Non-life Insurance Business, etc. (report published 25 December of the same year). The agency also published a comparison table of old and new text, and referenced related public comment materials linked to a draft Cabinet Office Ordinance to partially amend the Enforcement Regulations of the Insurance Business Act. Comments are due by 17:00 on 19 April Reiwa 8. After the public comment process and completion of the necessary procedures, the revised guidelines will be promulgated and apply from the effective date of the amended Insurance Business Act.