According to a report in Japanese newspaper Nikkei, on 19 February 2016, the Financial Services Agency (the FSA) requested the Life Insurance Association of Japan (the LIAJ), the industry association of life insurance companies, to improve the transparency of the commissions of bancassurance to be paid to banks. The background of this request is the FSA’s concern that excessive commissions may lead to an escalation of unnecessary sales of insurance products. It was reported that the FSA had requested the LIAJ to develop a concrete proposal on information disclosure of commissions by the end of March 2016.
Although the concrete proposal was not announced by the end of March 2016, the chairman of the LIAJ announced at a press conference on 15 April 2016 that the LIAJ would consider going ahead with the disclosure. Although the timing of commencement of disclosure was not expressly mentioned, it is expected that such disclosure system will be introduced this autumn.