JAPAN Trends and Developments Contributed by: Kazuo Yoshida and Tomonori Ogawa, Mori Hamada
to compensate for damages, it may be an obstacle to registration as an insurance broker. In view of this, it is expected that the minimum deposit may be reduced to JPY10 million. • Joint insurance solicitation with insurance agents: under the current Guidelines, insurance brokers are not allowed to engage in joint insurance solicita- tion with insurance agents for the same insurance policy. When insurance is jointly arranged for projects funded by multiple companies, insurance agents related to the companies that have invested in the project often participate. However, insur- ance brokers are not allowed to participate as they would be considered to be making a joint insur- ance solicitation with the insurance agents, which is prohibited under the current Guidelines. This prohibition will be lifted, and the insurance par- ties will be required to give a prior explanation of the arrangements to customers and to implement measures to prevent misidentification.
• Utilising insurance brokers for overseas direct insurance: under the IBA, if a person seeks to apply, with a foreign insurer without a branch in Japan, for an insurance contract relating to (i) persons with an address or residence in Japan, (ii) property located in Japan, or (iii) vessels or aircraft with Japanese nationality, prior approval must be obtained from the JFSA before making the applica- tion. The JFSA plans to allow insurance brokers to conduct research on the matters that would be required for approval and to engage in insurance solicitation for these insurance contracts in order to enhance the use of insurance brokers.
288 CHAMBERS.COM
Powered by FlippingBook