Japanese
February 15, 2021
Financial Services Agency

Public Consultation on the Cabinet Office Order to Partially Amend the Regulation for Enforcement of the Insurance Business Act

　In order to simplify the application procedure for permission necessary for concluding insurance contracts with foreign insurers without a branch office, etc. in Japan, the Financial Services Agency (“FSA”) has now launched a public consultation on the Cabinet Office Order to Partially Amend the Regulation for Enforcement of the Insurance Business Act.

1. Key Points of the Amendment

　At present, reform into attractive financial and capital markets that compare favorably with those overseas and development of an environment to attract advanced foreign human resources have been strategically promoted to work on various measures as an all-Japan effort to realize a globally open international financial center. In that respect, globally operating corporations are considered to have the need to provide insurance of companies operating insurance business, etc. in their home countries to employees who have been dispatched from overseas and working in Japan. In order to realize such need, when concluding new insurance contracts with those companies operating insurance business, etc. (assuming the case of foreign insurers without a branch office, etc. in Japan) in which employees working in Japan are designated as the insured persons, the corporations concerned need to implement the application procedure for permission in accordance with the following provisions of the Insurance Business Act^(Note).

(Note) Since Article 186, paragraph (1) of the Insurance Business Act prohibits to “conclude” an insurance contract, if the insured persons of the insurance contract do not include "persons with an address or residence in Japan" when concluding an insurance contract, it does not violate Article 186, paragraph (1) of the Insurance Business Act even if the insured persons are dispatched to Japan and become "persons with an address or residence in Japan" after the conclusion. However, when the insurance contract concerned is to be renewed with “persons with an address or residence in Japan” being included the insured persons, etc., the permission provided for in paragraph (2) of the said Article may be required.

　In order to simplify the procedure concerned, this revision limits the extent to which Japanese translation of accompanying documents required when applying for permission pertaining to Article 186, paragraph (2) of the Insurance Business Act is required, and for specific life insurance contracts in which a corporation is designated as the policyholder and its employees as the insured persons, eliminates the requirement to state the full names and addresses of the insured persons in a written application, etc.

Cabinet Office Order to Partially Amend the Regulation for Enforcement of the Insurance Business Act (Draft)

2. How to Submit Comments

　Please send your comments by email, making sure to include your name, address, and company/organization name by 18:00 (JST), Wednesday, March 17, 2021.
 
　The FSA may disclose your name or company/organization name as well as comments it received if so requested. Please indicate at the beginning of your comment if you wish to be anonymous in the case of such disclosure.
 
　The FSA may respond to similar comments all together. It should be noted that the FSA will not respond to each person who submits comment individually.
 
Email address: registration-english@fsa.go.jp