A Role is Needed to Apply Brakes to Unchecked Behavior
The Betrayal of a Major Life and Non-Life Insurance Company, Built on Trust

"We will now ensure prompt payment of insurance claims."
This is an apology newspaper advertisement from a major domestic fire insurance company. It clearly shows their panic over the gravity of the situation. It is unbelievable for an insurance company, whose sole selling point is trust. This type of scandal involves about 30 companies. It's a chilling thought.

About 17 or 18 years ago, a close friend of mine, an executive at a major securities firm, complained, "The Ministry of Finance (now the Ministry of Economy, Trade and Industry) is overly involved in supervision and guidance. I wish they would just let us operate freely..."
After a pause, he added, with a hint of self-deprecation, "However, it is true that if the supervisory authorities do nothing, banks and securities firms might do unpredictable things..." I still remember that conversation vividly.

Recently, the Financial Services Agency has been cracking down on illegal activities by life and non-life insurance companies and banks almost every week, imposing severe penalties such as business suspension. The Fair Trade Commission has also issued administrative sanctions against major banks, one after another, since the end of last year, warning against unfair business practices.

It is only natural that they face strict penalties, as they have long engaged in illegal acts, such as not paying insurance claims that should have been received, by exploiting the public's ignorance or lack of understanding of the intricate details of insurance policies.
It is the "government" bodies, such as the Financial Services Agency and the Fair Trade Commission, that are holding the life and non-life insurance companies and banks accountable for their legal violations. Their overwhelming public support is for good reason.
In essence, the public has high expectations for the "government" to embody its role. What I want to emphasize here is that the five years of the Koizumi administration were characterized by a pro-private sector policy, a shift from "government to private sector."

While it undeniably provided a significant stimulus to break down old structures, it also created an image that the "government" is inherently bad. Prioritizing the private sector ultimately means prioritizing profit. This fostered an atmosphere where anything goes in the pursuit of profit.

In any era, a system to curb unchecked behavior is necessary. That system is a high-quality "government." It should be an entity that keeps a watchful eye, issuing warnings and administrative sanctions to ensure the public can live with peace of mind. To reiterate, I want people to recognize anew the important role of a quality "government."