Prudential Life Chief Apologizes over Fraud

Tokyo, Jan. 23 (Jiji Press)–Prudential Life Insurance Co. President and CEO Kan Mabara apologized Friday for more than 100 current and former employees scamming clients out of some 3.1 billion yen. “I apologize from the bottom of my heart for causing great anxiety and inconvenience,” Mabara told a news conference in Tokyo. Behind the misconduct were the company’s corporate culture and its salary system that pays much to employees who win many contracts, he said, adding that the firm will launch a panel of outside experts on compensation to the affected clients. It was the first press conference held by Prudential Life since it released a statement Jan. 16 announcing the irregularities. Mabara is set to step down Feb. 1, according to the statement. The president said that the company will “give top priority to protecting victims” in terms of compensation, pledging to fully make up for losses in cases recognized by the planned expert panel. He emphasized the need for reviewing the company’s business model “from scratch” to prevent a recurrence of irregularities. The company plans to overhaul the current pay system and strengthen employee management by, for example, obliging sales workers to submit reports on their activities. Prudential Life will also work to revamp its corporate culture. “We will resolve challenges and make sure that financial irregularities will never happen again,” incoming President Hiromitsu Tokumaru said. The current president explained that the company “was unable to fully detect inappropriate practices conducted as our sales personnel built close relationships with customers.” An investigation launched by the company in August 2024 found that fraudulent receipts of money from clients took place between 1991 and 2025. A total of 107 sales personnel and former employees received money fraudulently from customers by introducing fictitious products, products not approved in Japan and cryptoassets for investment or did not return borrowed money. Some former employees have been arrested on suspicion of fraud. Prudential Life has paid about 60 million yen in damages to eight affected customers in cases involving three former employees. The company is continuing work related to refunds in other cases, but nearly 2.3 billion yen has not yet been returned to clients. END [Copyright The Jiji Press, Ltd.]