Japan Post : Progress of the Business Improvement Plan, e

UNOFFICIAL TRANSLATION

Although the Company pays close attention to provide English translation of the information disclosed in Japanese, the Japanese original prevails over its English translation in the case of any discrepancy.

	December 3, 2020
Company name:	Japan Post Holdings Co., Ltd.
Representative:	MASUDA Hiroya
	Director and Representative Executive
	Officer, President & CEO
	(Code number: 6178, First Section of
	the Tokyo Stock Exchange)
Contact:	IR Office (Phone: [phone])

Progress of the Business Improvement Plan, etc.

JAPAN POST HOLDINGS Co., Ltd. (Chiyoda-ku, Tokyo; MASUDA Hiroya, Director and Representative Executive Officer, President & CEO), JAPAN POST Co., Ltd. (Chiyoda-ku, Tokyo; KINUGAWA Kazuhide, President and CEO) and JAPAN POST INSURANCE Co., Ltd. (Chiyoda-ku, Tokyo; SENDA Tetsuya, Director and President, CEO Representative Executive Officer) hereby announce that the companies reported the progress of the business improvement plan (as of the end of November 2020), based on "Administrative Dispositions against Japan Post Insurance" dated December 27, 2019, and the status of the investigation of policies at Japan Post Insurance to the JP Reform Execution Committee.

The progress of the business improvement plan and the status of the investigation of policies at Japan Post Insurance are described in the following pages.

Directors, and establish a Group Liaison Meeting for internal controls to conduce in-depthdiscussions

Strengthen the Board of Directors, etc. of each company by utilizing the insight of Outside

(2) Strengthen governance on companies and the Group

Overview of the Primary Measures Under the Business Improvement Plan	Material 1

Establishing an appropriate sales promotion scheme

I. Creating a healthy corporate culture and establishing an appropriate

sales promotion scheme

Foster a customer-first mindset throughout the organization, and build a system in which the practice of insurance policy solicitation based on this mindset is appropriately evaluated.

(1) Review the code of conduct reflect the customer-first philosophy

Establishment of a code of conduct (solicitation policy, Basic Policies for Customer-first Business Operations) based on the principle of "providing insurance coverage founded on high ethical standards which take the original roles and mission of life insurance into account" (February 2020)

Embodiment

(2) Set the Standard of Japan Post Insurance Sales

Formulation of a standard sales model, whereby "products are proposed upon accurately identifying true coverage needs based on customers' concerns for the future and their current situations using a survey form, etc." (February 2020)

First line (post offices, call centers, service centers, etc.)

II. Checks and controls

Prevent the occurrence of policies that are not in line with the intentions of customers

1. Implement multi-layered checks from policy applications to the conclusion of a policy

1. Check at post offices

1. (Pre-application /post office) Expand the pre-checking function for underwriting (Added to the scope in April 2020)
2. (Post-application /post office) Conduct verification of customers' intentions by post office managers (Added to the scope

in April 2020)

(Going forward, establish a system environment that enables utilization of enhanced customer information (New function added in October 2020))

1. Check at Japan Post Insurance

1. (Post-application /Japan Post Insurance) Conduct verification of customers' intentions by the application call center (January 2020)
   Conduct verification of customers' intentions by the call center for cancellations (January 2020)
2. (Conclusion of a policy / Japan Post Insurance) Conduct verification of customers' intentions at the time of the underwriting process through checking of all policies (Added to the scope in April 2020)

Instill among all employees

(3) Instill a code of conduct based on the customer-first philosophy

• Training for all employees

Continuously conduct training for the understanding and establishment of the code of conduct based on the customer-first philosophy, including the training for instilling the "Standard of Japan Post Insurance sales" (started in February 2020)

• Implementation of coaching-based management training

Conduct managerial training for shifting from the sales promotion management-driven management method to a management/guidance method using coaching-based approach (Training implemented from June 2020 onward)

• Establishment of system for promoting comprehensive consulting (April 2020)

1)Renamed Financial Services Division of post offices as "Financial Consulting Division" and established a new "Financial Consulting Administration Division" at each branch

2)Renamed the Sales Capabilities Development Institute as the "Consultant Training Center," which now reports directly to the head office

3)Newly appointed "Consulting Advisors," instructors capable of providing instruction on comprehensive consulting

Consistent
(4) Revision of the system including (5)	Improvement of the mechanisms for
sales targets	reviewing coverage

Control

Second line (head office, etc.)

1. 1. Checks and controls
2. Strengthen systems to realize appropriate solicitation management

Reinforce staff in the areas of solicitation management, compliance, and customer services departments

1. 1. Reinforce the structure of solicitation quality instruction specialists (Organizational revision in April 2020)
   2. Strengthen and revise the investigation systems at the second line of the Japan Post Insurance head office (Organizational revision in April 2020) and branches
   3. Detection of complaints and in-depth analysis of the causes (In stages from December 2019 onward)
2. Controls including increasing the strictness of criteria for fact-finding and disciplinary action
3. 1. Conduct fact-finding that does not rely on confession (November 2019)
   2. Record and keep a voice record and a video record of the solicitation process (Expanded to all consultants from August 2020 for voice recording and keeping)
   3. Take disciplinary actions according to the condition and level of improper solicitation (Added suspension of solicitation and warning) (Implemented from April 2020 onward)
   4. Take rigorous disciplinary actions for managers of sales personnel found to have engaged in improper solicitation (Implemented from July 2020 onward)

Third line (Internal Audit Department）

1)Set sales targets involving higher solicitation quality (No sales targets set for FY2020)

2)Increase the weight of various evaluation criteria for solicitation quality

3)Review the ratio of basic salary to sales incentive for the sales personnel (April 2020)

4)Review the sales personnel commendation based on customer- first sales activities to put greater emphasis on solicitation quality (no sales personnel commendation for Japan Post Insurance products in FY2020)

1. Conditional cancellation system (January 2020)
   Achieves seamless continuation of coverage under the system at the time of policy rewriting
2. Policy conversion system
   When adjusting coverage, allows for a payment of insurance benefit within the scope of coverage under the policy prior to the adjustment, even when insurance benefit is not payable under the policy after the adjustment (Permission acquired in November 2020)

1. 1. Checks and controls
2. Strengthen Internal Audit Department
3. 1. Reinforce the human resources and organizational structure, and audit with higher efficacy by strengthening risk assessment
      (Decided on organizational revision in February 2020)
   2. Strengthen coordination with the Audit Committee (Continuously implement from February 2020 onward)

Establishing an appropriate sales promotion scheme	Strengthening of the appropriate solicitation quality control scheme
(Instill customer-first sales)		(Prevention of policies that are not in line with customer intentions)
		Strengthening governance by the Board of
Oversight by management
		Directors, etc.

III. Information sharing and governance

Upon strengthening governance based on accurate information, thoroughly implement the PDCA cycle, and steadily carry out and instill improvement measures to prevent recurrence

(1) Thoroughly implement the PDCA cycle

Identify and analyze various information including customer complaints, as well as employee opinions received at the contact point for business consultation (February 2020) and the external point of contact exclusively for financial services (March 2020) with higher risk sensitivity, and verify the effectiveness of the improvement measures and make revisions upon in-depth discussions (Implemented in stages from April 2020 onward)

(3) Monitor improvement measures and regularly announce the progress

Establish a task force for implementing various improvement measures (January 2020), which is being monitored by a third party, and announce the status on a regular basis

As of November 15, 2020

Status of progress of policy investigations in order to regain customers' trust	Material ２

• Investigations of specified rewriting cases/ Investigations of all insurance policies

• • 【Investigation of specified rewriting cases】
• In regard to the investigations of specified rewriting, we have mostly finished responding to customers as of the end of March 2020, except for cases that cannot be finished due to reasons attributable to customers.
• In regard to the sales personnel investigations in connection with the investigations of specified rewriting cases, we have identified 311 cases (the number of sales personnel involved: 413) of violations of laws and regulations and 3,342 cases (the number of sales personnel involved: 2,218) of violations of internal rules as of November 18, 2020.

• • 【Investigations of all insurance policies】
• In the investigations of all insurance policies, we received approximately 1,037 thousand replies as of November 15, 2020. We completed responding to customers, by the end of March 2020, except for cases that cannot be finished due to reasons attributable to customers. We continue responding customer requests sincerely.

• • Additional investigations of all insurance policies
• In regard to the additional investigations of all insurance policies, we have mostly completed responding to customers and continue responding to customers carefully for cases that cannot be finished due to reasons attributable to customers.
• In regard to the sales personnel investigations of additional investigations of all insurance policies and other investigations, we have identified 241 sales personnel who had violated laws and regulations and 84 sales personnel who had violated internal rules as of November 18, 2020.

• 【Status of investigations of multiple policies】

• In regard to sales personnel investigations of multiple policies which have been implemented from last year※, we completed the investigations except for one case which we cannot investigate due to a salesperson's sick leave. We have identified 84 sales personnel who had violated laws and regulations as of November 18, 2020.
• • Refer to the press release dated June 27, 2019.

• 【Investigations other than the investigations of multiple policies】
• In regard to the investigations other than the investigations of multiple policies, we have contacted customers in proportion to the amount of premiums and the number of times policies were rewritten through visiting by staff of Japan Post Insurance or sending letters to confirm customer

intentions.

			Policies for high	Policy rewriting
			involving multiple
			insurance premiums
			changes of the
		Status of confirmations	（more than	Total
		insured or the
		200,000 yen）
		of policy coverage	insurance type
		(*１)
		(Visiting by staff)		(*2,3)
			Number of applicable	Number of	Number of
			applicable	applicable
			customers（％）
			customers（％）	customers（％）
Customers whose policy	5,025	（98）	2,478	（94）	7,503	（97）
coverage and intentions have
been confirmed
	Not in line with customers'	2,138	（42）	940	（35）	3,078	（40）
	intentions
		Customers who request	1,945	（38）	830	（31）	2,775	（36）
		compensation for their
		policies
		Total	5,103（100）	2,650（100）	7,753（100）

• In regard to the investigations of multiple policies, we received 6,298 replies as of November 15, 2020 and continue responding 2,768 customers who request compensation for their policies sincerely.

Status of progress of policy investigations in order to regain customers' trust

• In regard to investigations by mail, we sent notification documents with reply questionnaires to customers and the staff of Japan Post Insurance have visited and have investigated customers who replied their policies are not in line with their intentions. We sent notification documents again to customers who had not replied to these questionnaires on July 30,

2020.				As of November 15, 2020
					Policy rewriting
					involving single change
			Policies for high	of the insured or the
			insurance type
			insurance premiums
		Status of confirmations	or		Total
		（more than 100,000
		policy rewriting using a
		of policy coverage	yen）		system to shorten the
(Sending letters and visits by	(*4)		maturities of existing
		staff)			contracts
					(*5,6,7)
			Number of	Number of	Number of
			applicable	applicable	applicable
			customers（％）	customers（％）	customers（％）
Customers whose policy
coverage and intentions have	8,551	（99）	18,161	（99）	26,712（99）
been confirmed
	Not in line with customers'	1,279	（15）	1,504	（8）	2,783（10）
	intentions
		Customers who request
		compensation for their	1,077	（12）	1,151	（6）	2,228 （8）
		policies
		Customers who replied letter	8,634（100）	18,308（100）	26,942（100）
		Total		14,059		32,814	46,873

*1. As of December 2019, policyholders aged 65 or older who have paid monthly premiums of 200,000 yen or more, and have had at least 1 policy which was cancelled in a short period thereafter during the period from April 2014 to December 2019.

*2. In the last five years, cases where sales personnel led the policyholders to change the insured at new enrollment without a change in policyholder, but the new policy was cancelled multiple times in a short period thereafter.

*3. Cases where sales personnel led customers to repeat rewriting insurance ⇔ annuity multiple times.

*4. As of December 2019, policyholders aged 65 or older who have paid monthly premiums of 100,000 yen or more, and have had at least 1 policy which was cancelled in a short period thereafter during the period from April 2014 to December 2019.

*5. In the last five years, cases where sales personnel led the policyholders to change the insured at new enrollment without a change in policyholder, but the new policy was cancelled at once in a short period thereafter.

*6. In the last five years, cases where sales personnel led customers to rewrite from annuity to insurance.

*7. Cases where sales personnel led customers to shorten the maturity of existing policies and apply for a new policy, but the underwriting of the new policy was declined.

*8. Customers who did not reply （The number of customers who had policies for high insurance premiums (more than 100,000 yen):5,425, the number of customers who had policies for other than high insurance premiums (more than 100,000 yen):14,506.)

• Follow-upsupport activities

• In regard to activities to regain customers' trust and to confirm policy coverage, we have confirmed 12,104 customers who experienced policy rewriting, etc. since April 2019. 9,685customers (approximately 80%) confirmed policy coverage, 3,434 customers (approximately
  28%) requested compensation for their policy, and 2,078 customers' (approximately 17%) policies were compensated as of 15 November, 2020.
• In addition, we sent letters for the policy coverage confirmation to about 34 thousands customers with whole life insurance where the customer and the insured are different and will execute for confirmation activities to customers with policies that were cancelled and rewritten after the payment period had ended.
• We have provided guidance to confirm the policy coverage by posting the policy coverage confirmation procedures on "Notification of Policy Coverage" sent to all policyholders in October 2020.

Status on Disciplinary Actions Against Sales Personnel and Their Managers at the Time

Material 3

【Disciplinary actions enforced by Japan Post Insurance

【Personnel changes and disciplinary actions enforced by

affecting the certification of sales personnel】

Japan Post (Disciplinary actions according to employment rules)】

1

Investigations of specified rewriting cases

○ Disciplinary actions have been enforced against 405 sales personnel since the last

announcement (August 26) (1,008 personnel on a cumulative basis), while disciplinary actions

○ 311 cases (the number of sales personnel involved: 413) of violations ofl aws and regulations

have been enforced against 85 managers at the time (321 managers on a cumulative basis)

and 3,342 cases (the number of sales personnel involved: 2,219) of violations of internal rules, in

Status of disciplinary actions against sales personnel (for both investigations of specified

which disciplinary actions affecting the certification of 2,622 sales personnel were finalized, while

rewriting cases and those of multiple policies）

(As of October 28)

there are undetermined disciplinary action against 10 personnel in order to allow for appeals.

Personnel

Determined

Enforced on this

Cumulative total

○

Sales personnel subjected to finalized disciplinary

actions affecting

their certification are

occasion

number enforced

classified into 65 personnel subjected to termination of solicitation operations (including 12

implicated

actions

Cases involving

Cases involving

multiple policies

multiple policies

personnel who are involved in other cases and 44 retired personnel subjected to penalties

(reshown)

(reshown)

equivalent to termination of solicitation operations), 1,086 personnel subjected to suspension of

Sales personnel

Punitive

10

9

25

24

solicitation operations for 1 month to 6 months, and 1,471 personnel subjected to suspension of

Disciplinary

【On this occasion】

dismissal

Suspension of

solicitation operations for 2 weeks or 3 weeks.

(As of October 21)

actions to be

Specified rewriting

4

1

12

6

enforced as

cases: 395 personnel

duty

Period of effective suspension of solicitation

Personnel

Category of violation

soon as they

Cases involving multiple

Reduction of

235

417

operations / disciplinary actions affecting

subjected to the

are

policies: 10 personnel

salary

-

1

certification

actions*

determined

【Cumulative total】

Formal warning

152

-

545

-

Termination of

Specified rewriting

58

cases: 977 personnel

Admonition

4

6

solicitation

Cases involving

-

-

Violations of laws and

operations

multiple policies: 31

personnel

Caution

0

3

regulations:

3 or 6 months

Strict warning

354

-

-

413 personnel

Total

405

10

1,008

31

Undetermined disciplinary action in order to allow

1

for appeals

(Note) Including punitive dismissal of one sales personnel found to have engaged in inappropriate

solicitation outside the investigations of specified rewriting cases and those of multiple policies

Termination of

• All actions are scheduled to complete by the end of November, except for those involving

Future

solicitation

7

outlook

sales personnel yet to be notified of the qualification of in-depth investigation and

personnel requiring reinvestigation

operations

Status of disciplinary actions against managers of sales personnel, etc. (post office

Violations of internal

1 to 6 months

Strict warning

732

managers / GM within post offices, etc.) at the time

(As of October 28)

rules:

2,219 personnel

2 or 3 weeks

Exempted from

1,471

Personnel

Determined

Enforced on this

Cumulative total

actions

occasion

number enforced

implicated

actions

Cases involving

Cases involving

Undetermined disciplinary action in order to allow

multiple policies

multiple policies

9

(reshown)

(reshown)

Suspension of

for appeals

1

2

-

duty

-

*Including the number of sales personnel who have already lost their certification, such as retirees.

Reduction of

1

1

2

Investigations of multiple policies (Cases implemented

salary

-

-

from last year*1)

Managers

Formal warning

4

2

46

4

○

Terminated solicitation operations of 76 personnel (including 9 retired personnel subjected

Admonition

29

209

to penalties equivalent to termination of solicitation operations), while suspending solicitation

-

10

operations of 2 personnel for 3 or 6 months.

(As of October 21)

Caution

50

-

63

-

Period of effective suspension of solicitation

Personnel subjected

Category of violation

operations / disciplinary actions affecting

Total

*2

85

321

certification

to the actions

2

14

Termination of

• Following the determination of

disciplinary actions

against sales

personnel, disciplinary

76

Future

actions will be enforced in stages against the managers at the time

solicitation

• In the meantime, investigations are underway to grasp the status of occurrence of

Violations of laws and

operations

outlook

wrongdoing, as well as to determine whether there were neglected individual issues based

on voluntary reporting by sales personnel

regulations:

3 or 6 months

Strict warning

2

• Investigations were completed in November, and disciplinary actions were enforced when

84 personnel

neglected issues were found

Undetermined disciplinary action in order to allow for

6

(Reference) Other disciplinary actions (against managers at head office, branches, area

appeals

headquarters, etc.)

• On the first occasion (implemented in July), disciplinary actions have been enforced against 378

*1 Refer to the press-release dated June 27, 2019.

*2 Including the number of sales personnel who have already lost their certification, such as

employees at head office, branches, area headquarters, etc. of Japan Post Insurance and Japan

retirees.

Post 【Disciplinary actions enforced against 1,707

personnel in total】

Material 4

Progress of

the Business Improvement Plan

December 3, 2020

JAPAN POST HOLDINGS Co., Ltd.

JAPAN POST Co., Ltd.

JAPAN POST INSURANCE Co., Ltd.

Progress of the Business Improvement Plan (As of the end of November 2020)

We are required to report the progress of the Business Improvement Plan which we submitted to regulators on January 31, 2020 periodically. We made our first report on March 13, 2020, our second report on June 12, 2020 and our third report on September 15, 2020 to regulators and announced them on same dates.

On an ongoing basis, we are required to report our progress to the regulators every 3 months. We plan to report and announce the progress as of the end of November by December 15, 2020.

Despite the ongoing impact of COVID-19, we have progressed as scheduled for the most part and implemented most measures originally planned as of the end of November.

The progress of each measure included in the Business Improvement Plan as of the end of November is following.

Establishing an appropriate sales promotion scheme

I. Creating a healthy corporate culture and establishing an appropriate sales promotion scheme

Blue・・・Japan Post Insurance

Yellow・・・Japan Post

Orange・・・Japan Post

Holdings

Contents of measures	Implementation	Implementation	Matters to be reported
deadline	status
(1) Review the code of conduct reflect the customer-first philosophy
Formulation of the code of conduct for	February	Implemented	• Determined the details of the revisions to the solicitation
customer-first business operations	2020	policy in February (revised in April)
Management and training for thoroughly			• Revised the basic policies for solicitation (Sales/Service Policy
implementing customer-first	April 2020	Implemented	and Basic Policies for Customer-first Business Operations) in
- Clarifying basic policies for solicitation			April 2020

(2) Set the Standard of Japan Post Insurance Sales

Set the Standard of Japan Post Insurance	February
sales	2020

Implemented	• Set a "Standard of Japan Post Insurance sales" based on a
solicitation policy that reflects the customer-first philosophy

(3) Instill a code of conduct based on the customer-first philosophy
			• Conducted training on the significance and basic concept of
	March		the "Standard of Japan Post Insurance sales" by the end of
Training based on the Standard of Japan	Implemented	March 2020
Post Insurance sales	2020	• Follow Trainings were implemented from April 2020 to the
			end of September 2020
			• Continuously conduct training from October 2020 onward
Management and training for thoroughly			• Conducted various training that contributes to customer-first
March		sales activities and comprehensive consulting services,
implementing customer-first
Implemented	including enhancement of solicitation quality, reinforcement of
- Training to improve knowledge and skills	2020
	technical knowledge, and improvement in communication
necessary for financial consulting			1
		skills

Progress of the Business Improvement Plan (As of the end of November 2020)

Contents of measures	Implementation	Implementation	Matters to be reported
deadline	status

			• In preparation for conducting training to help managers learn
	In stages		a new management approach and a management/instruction
Review of the training system, etc. for		method based on coaching, with a view to shifting from
from April	Implemented
management with excessive focus on sales promotion
managers	2020
	management. The training system and contents have been
	onward
		notified to branches in March 2020, and training has been
			implemented from June 2020 onward
			• Renamed Financial Services Division of post offices as
			"Financial Consulting Division" and established a new
			"Financial Consulting Administration Division" at each branch.
			Implemented an organizational revision to reform into a
Development of the framework for			customer-first management structure in April 2020
April 2020	Implemented	• Newly appointed Consulting Advisors, instructors capable of
promoting comprehensive consulting	providing instruction on comprehensive consulting, from April
			2020, revising the method for instructing the post office
			employees
			• Renamed the Sales Capabilities Development Institute as the
			"Consultant Training Center," making it report directly to the
			head office from April 2020

(4) Revision of the system including sales targets

Setting appropriate sales targets
Shift from sales targets focused on new sales
amounts (flow) to the sales targets focused on			• In order to regain customer trust as the top priority, sales
the policies in force (stock)	March 2020	(Implemented)
Setting sales targets commensurate with the			targets for the front-line employees will not be set for FY2020
sales capabilities, and revising target
allocation method
	At the time		• At the time of setting the next sales targets, reflect the
Reflecting the perspective of solicitation	of setting	In
the next	perspective of solicitation quality in the status check and
quality in sales targets, etc.	preparation
sales	verification by the department in charge
	targets
			• Newly established evaluation items and criteria for solicitation
Personnel evaluation and reward	April 2020	Implemented	quality in April 2020 for personnel evaluation of counter
services personnel and sales personnel*, etc.
			* Renamed as consultants from April 2020

2

Progress of the Business Improvement Plan (As of the end of November 2020)

Contents of measures	Implementation	Implementation	Matters to be reported
deadline	status
Measures for policy rewriting (quasi-policy
conversion)
1) Revision of sales allowance* (half
payment to non-payment)	March		• Implemented revision of sales allowance and expansion of the
2) Extension of the rewriting qualifying	Implemented
2020	rewriting qualifying period from April 2020
period (from 3 prior / 6 after to 12 prior
/ 13 after)
*Sales results have been revised to non-
recording in August 2019
			• As sales targets will not be set for FY2020, determined not to
Incentive measures	April 2020	Implemented	organize sales personnel commendation in FY2021 based on
			FY2020 results

(5) Improvement of the mechanisms for reviewing coverage

Introduction of a conditional cancellation	January		• For the adjustment of insurance policy content or products
Implemented	from a customer-first point of view, introduced a conditional
system	2020
	cancellation system
			• Applied for authority approval and acquired permission in
Introduction of a policy conversion system	April 2021	In	November 2020
preparation	• Preparing for system development with a view to April 2021
			introduction
Developing new products meeting our	Continuously	In	• Continuously considering the enhancement of product line-up
consider from	for coverage-based products, which are in high demand from
customers' insurance needs	April 2020	preparation
customers and whose market is expanding
	onward

3

Progress of the Business Improvement Plan (As of the end of November 2020)

First line (post offices, call centers, service centers, etc.)

II. Checks and controls

Contents of measures	Implementation	Implementation	Matters to be reported
deadline	status
(1) Implement multi-layered checks from policy applications to the conclusion of a policy
Check contract applications
1) Expansion of the pre-checking function
for underwriting	1), 2), 4)
2) Expansion of scope of checking of all
March 2020		• For 1), 2), and 4), implemented the expansion of scope* in
cases by post office managers
3) Implementation of the verification of	3), 5)		the revision for the term ended April 2020
customers' intentions by the application		For 3) and 5), implemented in January 2020
call center	January	Implemented	• For 6), reviewed that we started sending introduction for the
4) Expansion of target of checking in	2020		confirmation of application coverage in October 2020 and
underwriting process
6)		started the part of confirmation tasks by branch employees
5) Implementation of the verification of
customer's intentions by the cancellation	October		other than service assistant
call center	2020
6) Review follow-upcheck (thanks-call,
letters, SA investigation)
System improvements			• Established a framework to confirm past histories, including
Increasing sophistication of customer
		enrollment of existing policies, at the time of solicitation in the
information management
March 2020		revision for the term ended April 2020. We set up a checking
Establishing a system framework capable	Implemented
onward	function for customer policies and past cancellation histories
of easily identifying policy enrollment and
		in the sales procedure confirmation process (pre-checking
cancellation histories at the time of
		etc.) in October 2020
solicitation
			• Added items required to be recorded by employees to the
Review of items listed in the sales activities	January	Implemented	sales activities log, clarified the entry rules, and strengthened
log	2020	the management function focused on solicitation quality by
			clarifying items to be confirmed by managers	4

Progress of the Business Improvement Plan (As of the end of November 2020)

Second line (head office, etc.)

II. Checks and controls

Contents of measures	Implementation	Implementation	Matters to be reported
deadline	status
(2) Strengthen systems to realize appropriate solicitation management
			• Implemented a revision of solicitation quality instruction specialists
Strengthening of insurance solicitation			and organizations related to the structure of Financial Operations
April 2020	Implemented	Divisions at branches in April 2020, for enhancing the insurance
management framework at Japan Post branches
		solicitation management framework at branches in order to improve
			solicitation quality
	Being		• Continuously conducting the verification of the management
Verification of the management framework for	implemented	Partially	framework for insurance solicitation quality at all post offices by the
from	employees of the Auditors Office* (resuming inspections, etc., which
insurance solicitation quality	implemented
November	had been suspended due to the impact of COVID-19, in July)
	2019		*Renamed as Inspection Office in April 2020
Review of functions of the Japan Post Insurance
head office			• Implemented the transfer of the first-line operations such as the
Establishing a sales structure based on ensuring
		improvement of solicitation flow to sales-related departments
solicitation quality by transferring the first-line
		(established Solicitation Quality Improvement Office in the Sales
operations such as the improvement of solicitation	April 2020	Implemented
Planning Division) and concentration of inspections and
flow to sales-related departments
		investigations to the Compliance Investigation Office (newly
Strengthening investigation systems by
		established) in April 2020
concentrating the command function for the
investigation operations
Verification of effectiveness of measures by the
second line at the Japan Post Insurance head
office
The second line (Solicitation Management			• Verified the solicitation checking framework from the perspective of
Administration Division) conducts verification of the	April 2020
Implemented	prevention and early detection in March 2020, and formulated
effectiveness of each measure implemented based	onward
	improvement measures
on the Business Improvement Plan, results of
which are reported to various meeting bodies, and
provide recommendations for improvements as
necessary
Review of functions of the Japan Post Insurance			• Branches are in charge of confirmation activities about customer
branches	July 2020	Implemented
Strengthening the structure related to investigating	onward	feedback, etc. (Implemented in October 2020)
the status of solicitation and proper solicitation

5

Progress of the Business Improvement Plan (As of the end of November 2020)

Contents of measures	Implementation	Implementation	Matters to be reported
deadline	status
			• We abolished the role of Area Instructor and established the role of
Enhancing guidance to Area Instructors, review	July 2020		Training Specialist responsible for ensuring that the staff of Agency
Implemented	Relations Division and Post Office to implement appropriate
of their roles	onward
	solicitation which reflects the customer-first philosophy in August
			2020
(3) Controls including increasing the strictness of criteria for fact-finding and disciplinary action
More strict standards to determine
incidents and disciplinary actions
1) Conducting fact-finding that does not rely
on confession			• Revised related rules in March 2020 and applied them in April
2) Enhancement of investigation cooperation
(self-declaration) system			• With respect to 5), registered the employees with
3) Addition of "suspension of solicitation" and	March 2020	Implemented	questionable solicitation quality on the pre-checking function
"warning" to disciplinary actions for sales	for underwriting starting on April 20, 2020, and implemented
personnel			follow-up including restriction on preparation of coverage
4) Clarification of managerial responsibility			proposal for a certain period and confirmation by managers
and request for disciplinary actions
5) Selection of "employees with questionable
solicitation quality" and implementation of
"follow-up on sales personnel"
			• With respect to disciplinary actions against the wrongdoers
Personnel changes and disciplinary actions	In stages		and related parties in the investigations of specified rewriting
Implemented	cases, disciplinary actions have been implemented in stages
in relation to the investigations of specified	after the
completion of	in stages	after the wrongdoing was confirmed (the first and second
rewriting cases
investigation		disciplinary proceedings were announced in July and August,
			respectively and the third was announced in October)
System improvements	August		• Trial implementation by post office managers was started in
	March 2020 and trial implementation by certain sales
Voice recording and maintaining record of	2020	Implemented
personnel was started on April 20, 2020. We carried out full
solicitation activities	onward
	implementation for all sales personnel on August 24, 2020

6

Progress of the Business Improvement Plan (As of the end of November 2020)

Third line (Internal Audit Department）

II. Checks and controls

Contents of measures	Implementation	Implementation	Matters to be reported
deadline	status
(4) Strengthen Internal Audit Department
Reinforcement of internal controls
1) Reinforcement of involvement of the
Audit Committee in the Internal Audit			• With respect to 1), decided on the revision of related rules in
Department
		March
Prior approval of important personnel	1) March
	• With respect to 2), established a framework in February, in
affairs in the Internal Audit Department	2020		which instructions for investigations can be given to the
2) Reinforcement of functions of the Audit	2) February	Implemented
Internal Audit Department as needed, based on reports from
Committee	2020
	executive officers in charge, and discussions on the actual
In addition to receiving reports on the	onward
	situation can be held based on the reports on the
status of solicitation, etc. and instructing
		investigations
further investigations as needed, provide
necessary advice, etc. to executive
officers in charge

7

Progress of the Business Improvement Plan (As of the end of November 2020)

Oversight by management

III. Information sharing and governance

Contents of measures	Implementation	Implementation	Matters to be reported
deadline	status
(1) Thoroughly implement the PDCA cycle
			• Established the telephone consultation desk for Japan Post
			Insurance, etc. manned by Consumer Affairs Consultants to
Establishment of the telephone consultation	Implemented		establish an environment in which Japan Post Insurance
	policyholders can consult with peace of mind
desk for Japan Post Insurance, etc. by	in August	Implemented
• Press release was published on July 31 to the effect that the
Consumer Affairs Consultants	2020
	telephone consultation desk was scheduled to start receiving
			consultations from August 17, 2020 (the status of usage is as
			per the Attachment)
Establishment of the "Contact Point for	Implemented		• Status, etc. of consultations are summarized each month and
	reported to Group Customer Satisfaction Promotion Liaison
Business Consultation for Japan Post Group	in February	Implemented
Meeting, etc. (September 2, October 14 and November 5,
Employees"	2020
	2020)
Establishment of external point of contact	Implemented		• Appropriately respond to contacted cases, while the status of
Implemented	usage is summarized and reported to the Group Compliance
exclusively for financial services	in March	Committee, etc. (September 28, October 27 and November
2020
			30, 2020)
Hearing the voices of our employees
1) Japan Post Insurance suggestion box			• In regard to 1), we started from December 2019. For the
Promoting efforts for corporate culture	1)		improvement of visibility and visualization of agreement with
reform based on employee opinions		respect to suggestions etc., we have constructed a system
through the suggestion box	December		since July 2020
2019	Implemented
2) Dialogue with Management	• In regard to 2), the Dialogue had been started in the late
2) March
The management team visits the area		February 2020, was subsequently suspended in light of the
2020
headquarters, branches, and service			growing effects of COVID-19 and was re-started by a web
centers to understand opinions of the front-			meeting on May 28, 2020
line employees through dialogue

8

Progress of the Business Improvement Plan (As of the end of November 2020)

Contents of measures	Implementation	Implementation		Matters to be reported
deadline	status
			• Regarding establishment and utilization of the "Contact Point
			for Improper Financial Sales," dissemination and status of
Expansion of whistleblowing system	March 2020	Implemented	instillation are to be confirmed through compliance training
and e-learning. However, due to the impact of COVID-19,
			part of the said training, etc. was implemented in the second
			quarter (July	September)
			• Status of usage of the whistleblowing contact points, including
Sharing information concerning	Implementing		the number of whistleblowing reports, is summarized on a
Implemented	monthly basis, and reported to the Group Compliance
whistleblowing contact points	since October	Committee held once a month in principle (September 28,
2019
			October 27 and November 30, 2020), sharing information
			among the Group companies

(2) Strengthen governance on companies and the Group

Reinforcement of internal controls
Establishment of "deliberation" in the
operation of the Board of Directors	March 2020	Implemented	• Decided on revisions to the related rules in March
In addition to establishing "deliberation,"
review the scope of matters to be resolved
			• 1) Regarding the reexamination of the memorandum
Decision-making process in relation to	1)		regarding the rules on the Group administration, a decision
	was made on the draft of the revised memorandum by the
important matters	Implemented
	end of March, which took effect on April 1, 2020
1) Revision to the memorandum regarding	in April 2020
Implemented	• 2) Various committees and liaison meetings that have been
the rules on the Group administration	2)
Implemented		established in the previous fiscal year, including the Group
2) Establishment and enhancement of
by December		Compliance Committee, will be held once a month in principle,
committees and liaison meetings	2019
	and their status will be reported to the Management
			Committee, etc.

9

Progress of the Business Improvement Plan (As of the end of November 2020)

Contents of measures	Implementation	Implementation	Matters to be reported
deadline	status

			• 1) Apart from the reporting on management information of
	1)		regular items, discussions are carried out on the Group's
		important issues, including the status of voices from
Demonstration of governance function	Implementing
since		customers and employees received at each company and the
1) Enhancing functions of the "Group	December		status of operational risks
Steering Committee"	2019	Implemented
• 2) Reported issues and concerns regarding sales and
2) Enhancing functions related to sales and	2)
Implementing		operations of each business subsidiary to senior management
operations at Japan Post Holdings
since January		(Reported on "leakage case of corporate information of our
	2020
			business partners," "delivery work of Kuroneko DM-Bin in
			certain areas," etc.)
			• Held the Group Compliance Committee on a monthly basis
	Implementing		(September 28, October 27 and November 30, 2020) to
Establishment of the Group Compliance	Implemented	share information on and discuss the status of the improper
Committee	since October	solicitation incidents discovered by the investigations of Japan
2019
			Post Insurance policies, as well as major incidents and
			initiatives related to compliance and risks
			• Based on the deliberation at the Compliance Committee of
Follow-up on the opinions, etc. made at the	Implementing		Japan Post Holdings (held on a quarterly basis) and report to
Compliance Committee of Japan Post	since	Implemented	the Management Committee, reported the status of
December
Holdings	2019		promotion of the Group compliance to the Board of Directors
			(November 13, 2020)

10

Progress of the Business Improvement Plan (As of the end of November 2020)

Contents of measures	Implementation	Implementation	Matters to be reported
deadline	status
			• Implementing on-site monitoring at post offices, etc.
			• Total number of sites for monitoring from September to
			November was as follows:
			[Japan Post]
			Post offices	30 locations
			Financial consulting divisions	10 locations
			Regional offices	2 locations
			[Japan Post Insurance]
			Branches	8 locations
			Area headquarters	2 locations
			• Number of sites for monitoring from December to March
	Implementing		(scheduled) is as follows:
Implementation of on-site monitoring at	Implemented	[Japan Post]
post offices, etc. by Japan Post Holdings	since January	Post offices	40 locations
2020
			Financial consulting divisions	6 locations
			Regional offices	4 locations
			[Japan Post Insurance]
			Branches	8 locations
			Area headquarters	4 locations
			• Implementation results of the on-sitemonitoring for the
			second quarter of FY2020 was reported to the Group Internal
			Audit Liaison Committee (September 30, 2020) and the
			Management Committee (October 13, 2020), etc., while the
			results (preliminary figures) of the prior questionnaire
			regarding the monitoring was also reported to the Group
			Internal Audit Liaison Committee on a monthly basis
			• Status of audit activities in the second quarter regarding the
			"Basic Policies for Customer-first Business Operations," etc.
			were reported to the Group Internal Audit Liaison Committee
Enhancement of the Group Internal Audit	Implementing		(September 30, 2020)
since	Implemented	• Results of the on-site monitoring as well as the status of
Liaison Committee, etc.	November
	audits on the "Basic Policies for Customer-first Business
	2019
			Operations" during the third quarter, are scheduled to be
			reported to the Group Internal Audit Liaison Committee for
			the month of December

11

Progress of the Business Improvement Plan (As of the end of November 2020)

Contents of measures	Implementation	Implementation	Matters to be reported
deadline	status

1. Monitor improvement measures and regularly announce the progress
2. • Announced the "pledge to regain customer trust" on September 11, 2020 in line with the announcement

Delivery of the message from the top	Start date		regarding the implementation of business operations for
of business	Implemented	regaining trust. In line with the start of business
management
operations		operations for regaining trust, shared an email and a video
			that deliver messages from the four Group company
			presidents
	Managing the		• JP Reform Execution Committee meeting was held on
	progress of the		September 3 and October 21, 2020
	improvement
Initiatives for managing the progress of	measures		• Departments in charge of each measure explained the
Implemented
	progress of the Business Improvement Plan (improvement
the improvement measures and achieving	since	Implemented
February	measures) for verification, and the measures of Japan Post
customer-first business operations
Achieving customer-		Holdings, which have all been implemented, are scheduled
	operations
	first business
	Implemented		to be submitted at the seventh meeting of the JP Reform
	since April		Execution Committee to be held on December 3, 2020
			• The Management Philosophy handbook was prepared to
			once again instill the Management Philosophy among all
			employees, copies of which were distributed to all
			employees within August
Initiatives for instilling the Management	Implemented	Implemented	• Whenever copies of the Management Philosophy handbook
Philosophy	since April	are distributed, the video message (DVD) for the
			Management Philosophy handbook training, lectured by
			the President of Japan Post Holdings, must be viewed to
			ensure that the importance of the Management Philosophy
			is disseminated

12

Progress of the Business Improvement Plan (As of the end of November 2020)

[Reference] Progress by company

			1) End of August	2) End of November	3) End of February
		Item	(estimated)
		(Reported on	(To be reported by
			September 15, 2020)	December 15, 2020)	(To be reported by
			March 15, 2020)
			Partially	Implemented	Partially	Implemented	Partially	Implemented
			implemented	implemented	implemented
	1.	Actions on sales personnel (6 measures)	0	6	0	6	0	6
Japan	2.	Sales promotion framework (7 measures)	３	３	1	5	1	5
Insurance	3.	Organizational culture (9 measures)	１	8	1	8	1	8
Post	4.	Solicitation management framework (22	7	14	4	17	3	18
	measures)
5.	Governance (14 measures)	6	8	5	9	4	10
		Total (58 measures)	17	39	11	45	9	47
	1.	Actions on specified rewriting cases (2	0	2	0	2	0	2
		measures)
Japan	2.	Establishment of sales promotion framework (10	1	8	1	8	1	9
	measures)
3.	Development of organizational culture (18	0	18	0	18	0	18
Post		measures)
4.	framework (20 measures)	1	18	1	18	1	18
	Establishment of solicitation management
	5.	Enhancement of governance (23 measures)	2	20	1	21	1	21
		Total (73 measures)	4	66	3	67	3	68
	1.	Decision-making process on important matters	0	1	0	1	0	1
		(1 measure)
Japan
2.	Demonstration of governance functions (1	0	1	0	1	0	1
	measure)
Post	3.	Enhancement of Group compliance functions (6	0	6	0	6	0	6
	measures)
4.	Enhancement of Audit Division functions (2	0	2	0	2	0	2
Holdings
	measures)
5.	Establishment of framework for instilling the
	Management Philosophy and radical	2	0	0	3	0	3
	enhancement of governance for implementing
		improvement measures (3 measures)

Total (13 measures)	2	10	0	13	0	13	13

Status of Reception at the Telephone Consultation Desk for Japan Post Insurance,

etc. by Consumer Affairs Consultants

Material 4 Attachment

813 consultations were received by the end of November at the "telephone consultation desk for Japan Post Insurance, etc. by Consumer Affairs Consultants" (established on August 17).

The number and details of consultations as of the end of November are as follows: 【Details of consultations】

Category

Response

Consultation examples

Number of

consultations

• Cases referred to Japan Post Insurance from the desk for solutions

• Cases referred to Japan Post Insurance from the desk asking to call back the caller

• Cases referred to Japan Post Insurance from the desk for sharing of information

• Cases handled solely by the desk

Request for policy cancellation, request for policy avoidance, etc.

Request for policy avoidance

Inquiry about the procedure for claiming insurance benefits, request for refund, request for disciplinary actions against sales personnel

Inquiry about the insurance coverage / procedure to receive payment, complaint about insurance coverage, inquiry regarding whether it is possible to conclude a policy

80

3

18

687

5	Others			Inquiry about variable annuity, etc.	25
						813 cases in total
【Trend in the number of consultations】
	Month	August	September	October	November	Total
	Number of	49	203	297	264	813
	consultations