Prudential Japan Commits to Reforms Following Extensive Misconduct Issues

Prudential Financial Inc.’s Japan insurance head has pledged to enhance governance following alarming revelations that improper actions by over 100 current and former employees have cost customers approximately $20 million.

During a recent news conference in Tokyo, the chief executive officer of Prudential Life Insurance Co., Kan Mabara, issued a “deep” apology for what he described as “multiple inappropriate cases.” In a statement released last week, Prudential Life Insurance disclosed that employees had improperly received ¥3.14 billion (around $20 million) from customers. Mabara announced that he would step down from his position on February 1.

Executives at the news conference highlighted that the company’s pay structure was heavily commission-based, which distorted employee incentives and led to rule violations. “We have attracted those who have an excessive desire to make money,” Mabara stated. “We had to take extra care in managing them, but we were not as alert to risks as we should have been.”

In light of Japan’s shrinking and aging population, policymakers are striving to encourage individual investment activity. However, issues with customer accounts at financial firms could undermine this initiative. Since August 2024, Prudential Life has been proactively checking with customers following the discovery of multiple cases of misconduct.

An internal investigation revealed that approximately 106 current and former employees solicited around 500 customers for investment products that had not been approved by the firm, including cryptocurrencies.

Photograph: The Prudential Tower building in Tokyo. Photo credit: Kiyoshi Ota/Bloomberg

Copyright 2026 Bloomberg.

Prudential Financial Inc.’s Japan insurance head has pledged to enhance governance following alarming revelations that improper actions by over 100 current and former employees have cost customers approximately $20 million.

During a recent news conference in Tokyo, the chief executive officer of Prudential Life Insurance Co., Kan Mabara, issued a “deep” apology for what he described as “multiple inappropriate cases.” In a statement released last week, Prudential Life Insurance disclosed that employees had improperly received ¥3.14 billion (around $20 million) from customers. Mabara announced that he would step down from his position on February 1.

Executives at the news conference highlighted that the company’s pay structure was heavily commission-based, which distorted employee incentives and led to rule violations. “We have attracted those who have an excessive desire to make money,” Mabara stated. “We had to take extra care in managing them, but we were not as alert to risks as we should have been.”

In light of Japan’s shrinking and aging population, policymakers are striving to encourage individual investment activity. However, issues with customer accounts at financial firms could undermine this initiative. Since August 2024, Prudential Life has been proactively checking with customers following the discovery of multiple cases of misconduct.

An internal investigation revealed that approximately 106 current and former employees solicited around 500 customers for investment products that had not been approved by the firm, including cryptocurrencies.

Photograph: The Prudential Tower building in Tokyo. Photo credit: Kiyoshi Ota/Bloomberg

Copyright 2026 Bloomberg.