Prudential Life Insurance Co., Ltd. (Prudential of Japan), a subsidiary of Prudential Financial, Inc., has released the findings of a Special Investigation Committee regarding inappropriate monetary conduct by its sales employees. The report, published on October 8, 2026, concludes that the misconduct was not isolated to individual employees but was a structural problem resulting from the company's management framework and business model.
The Special Investigation Committee found that the company's business model, which relied excessively on personal networks and relationships of trust, had deviated from its intended course. The Committee also identified that the closed nature of relationships between sales employees and customers made it difficult for management to detect signs of inappropriate exchanges of money and investment solicitation. Furthermore, the Committee noted shortcomings in the compensation system for sales employees and the management and oversight framework for sales managers.
In response to the findings, Prudential of Japan has implemented a range of remediation measures. The company has established a Customer Reimbursement Committee, composed of third parties, to determine reimbursement for affected customers. As of the report's publication, reviews have been completed for 492 of the 498 affected individuals.
Regarding disciplinary actions, the company determined that a total of 146 current and former sales employees were involved in the inappropriate conduct. Of these, 53 were dismissed or resigned under instruction, 68 were suspended from duty, and 25 received other disciplinary measures, such as admonitions. Disciplinary action against all 146 individuals was completed by April 2026.
The company also addressed management responsibility. Hiromitsu Tokumaru, the Representative Director and President, and Directors Yasuhiro Akiyama and Kuniyoshi Hayashi have voluntarily returned 30% of their monthly remuneration for three months.
Under new management established since February 2026, the company is pursuing structural reforms to prevent recurrence. These initiatives include strengthening the soundness of sales activities, reviewing evaluation and compensation systems, reforming the agency and sales structure, and transforming the corporate culture to be more customer-centric.
