Chamber Calls On Japan To Promote Financial Competition

WASHINGTON, D.C. – The United States Chamber of Commerce called on Japan's Council on Economic and Fiscal Policy to consider the potential threats posed to fair competition in the financial and insurance markets by the proposed privatization of Kampo, Japan Post's life insurance giant.

"Japan's privatization initiative – aimed at bringing Kampo's operations into line with other private insurers – is a good thing," said Dan Christman, U.S. Chamber senior vice president for international. "But in its efforts, the government must consider the issue of Kampo's enormous size such that privatization does not pose a serious threat to private-sector financial institutions."

The Council on Economic and Fiscal Policy is currently in deliberations on Japanese government initiatives to privatize Japan Post and Kampo, the world's largest life insurer.

Kampo has garnered 40 percent of the Japanese insurance marketplace thanks to a series of government-bestowed advantages. Kampo pays no taxes, receives government guarantees for its products, operates under separate rules and oversight, and does not contribute into a safety net fund for policyholders.

The U.S. Chamber has concerns about privatizing at their current scale the operation of postal savings and postal life insurance in Japan.

"We would not prescribe to the Japanese government exactly how it should address this challenge, but we do hope the government will keep in mind the principles of fair competition and how it benefits consumers and the economy as a whole," said Christman.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector, and region.

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