Japanese
April 19, 2021
Financial Services Agency

Finalization of Cabinet Office Order to Partially Amend the Regulation for Enforcement of the Insurance Business Act

1. Result of the Public Consultation

  The Financial Services Agency (“FSA”) published the following proposals for public consultation between February 15 and March 17, 2021.

The Cabinet Office Order to Partially Amend the Regulation for Enforcement of the Insurance Business Act

  As a result, the FSA received one comment from one individual. The FSA greatly appreciates those who considered these proposals.
  Appendix1 sets out the FSAʼs responses to the comments received on the proposals. While the FSA received several comments beyond the scope of the proposals too, the FSA will consider them to leverage for the FSAʼs financial regulatory policy.

2. 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.

（Appendix 1）The summary of comments received during the public consultation and the FSAʼs responses
（Appendix 2）Cabinet Office Order to Partially Amend the Regulation for Enforcement of the Insurance Business Act

 Japanese non-life insurance companies also offer insurance that can be used by those who transfer to Japan from overseas. For details, please refer to the following link.
(Click here for a link to The General Insurance Association of Japan website)

3. Date of Promulgation and Enforcement

 The Cabinet Office Order, the Ordinance and the Regulatory Notices have been promulgated and come into effect as of today, April 19, 2021.