TOKYO (TR) — Prudential Life Insurance announced on Wednesday it will extend its self-imposed ban on new sales by 180 days following a massive fraud scandal in which employees swindled customers out of more than 3 billion yen.
During a press conference, Prudential Life president Hiromitsu Tokumaru bowed deeply in apology, admitting that the company needs significantly more time to reform its management and root out its problematic sales culture.
“Resuming half-heartedly now would be a much bigger risk for the future,” Tokumaru told reporters.
In January, the foreign-affiliated insurer revealed a staggering breach of trust: 106 current and former employees had scammed approximately 500 customers out of 3.08 billion yen between 1991 and 2025. Exploiting the trust they had built as life insurance advisors, the rogue agents pitched fictitious investment schemes — ranging from cryptocurrency to “exclusive” employee-only stocks — to drain their clients’ accounts.
In response, the company initially implemented a 90-day freeze on new contract sales starting February 9. Wednesday’s announcement pushes the sales ban into early November.
The corporate governance collapse previously forced former CEO Kan Mahara to resign in disgrace on February 1 to take responsibility for the widespread grift.
However, the fallout is far from over. The company disclosed Wednesday that it has received roughly 700 new inquiries from customers reporting potential financial damages and inappropriate investment solicitations.
An independent compensation committee made up of third-party experts has been established to investigate the ballooning claims and issue refunds.
