TOKYO (TR) — Prudential Life Insurance introduced on Wednesday it is going to prolong its self-imposed ban on new gross sales by 180 days following a large fraud scandal wherein staff swindled clients out of greater than 3 billion yen.
During a press convention, Prudential Life president Hiromitsu Tokumaru bowed deeply in apology, admitting that the corporate wants considerably extra time to reform its administration and root out its problematic gross sales tradition.
“Resuming half-heartedly now would be a much bigger risk for the future,” Tokumaru instructed reporters.
In January, the foreign-affiliated insurer revealed a staggering breach of belief: 106 present and former staff had scammed roughly 500 clients out of three.08 billion yen between 1991 and 2025. Exploiting the belief they’d constructed as life insurance coverage advisors, the rogue brokers pitched fictitious funding schemes — starting from cryptocurrency to “exclusive” employee-only shares — to empty their shoppers’ accounts.
In response, the corporate initially carried out a 90-day freeze on new contract gross sales beginning February 9. Wednesday’s announcement pushes the gross sales ban into early November.
The company governance collapse beforehand compelled former CEO Kan Mahara to resign in shame on February 1 to take accountability for the widespread grift.
However, the fallout is much from over. The firm disclosed Wednesday that it has acquired roughly 700 new inquiries from clients reporting potential monetary damages and inappropriate funding solicitations.
An unbiased compensation committee made up of third-party consultants has been established to analyze the ballooning claims and situation refunds.