Japan Post Insurance : (Update on the Previous Disclosure) Progress of the Business Improvement Plan

UNOFFICIAL TRANSLATION

Although Japan Post Insurance pays close attention to provide English translation of the information disclosed in Japanese, the Japanese original prevails over its English translation in the case of any discrepancy.

June 15, 2021

Company name: JAPAN POST INSURANCE Co., Ltd.

Representative: SENDA Tetsuya, Director and President, CEO, Representative Executive Officer

Stock exchange listing: Tokyo Stock Exchange First Section (Code Number: 7181)

(Update on the Previous Disclosure) Progress of the Business Improvement Plan

JAPAN POST INSURANCE Co., Ltd. ("Japan Post Insurance"; Chiyoda-ku, Tokyo; SENDA Tetsuya, Director and President, CEO, Representative Executive Officer) is hereby announcing that it submitted "Progress of the Business Improvement Plan (as of the end of May 2021) " based on the business improvement order (December 27, 2019), to the Financial Services Agency of Japan, today. The summary of the Progress of the Business Improvement Plan is described in the attachment.

An announcement will be made promptly if further related matters due for disclosure arise.

Attachment

Progress of the Business Improvement Plan

1. Results of the investigations of policies by Japan Post Insurance

1. Status of the investigations of specified rewriting cases
   In regard to the investigations of specified rewriting cases, we confirmed solicitation

circumstances at the time of enrollment and customers' intentions about reinstatement by letters, phone calls and home visit to approximately 156 thousand customers. We finished responding to customers as of the end of March 2020, except for cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including the above cases that could not be finished due to reasons attributable to customers.

1. Status of the sales personnel investigations in connection with the investigations of specified rewriting cases

In regard to the sales personnel investigations in connection with the investigations of specified rewriting cases, we have mostly completed the review of sales personnel investigations as of the end of April 2020. We have identified 415 sales personnel who had violated laws and regulations and 2,215 sales personnel who had violated internal rules as of May 31, 2021. Also, we have taken disciplinary actions in the form of termination of solicitation operations against 76 personnel (including 13 personnel* who are involved in other cases and 45 retired personnel subjected to penalties equivalent to termination of solicitation operations), suspension of solicitation operations of 1 month to 6 months against 1,002 personnel, suspension of solicitation for 2 weeks or 3 weeks against 1,550 personnel and undetermined disciplinary actions in order to allow for appeals against 2 personnel as of the same date.

Meanwhile, we have already started remedial training for the sales personnel who were identified to have violated laws and regulations or internal rules, based on the results of the sales personnel investigations in connection with the investigations of specified rewriting cases (2,456 personnel were subject to training as of May 31, 2021).

• 10 of 13 personnel who are involved in other cases, are involved in the portion of investigations of multiple policies which have been implemented since 2019 and the other

3 of 13 personnel are involved in the cases which have been found out from customers' voices.

1. Status of the investigation of all insurance policies
   In the investigations of all insurance policies, we sent notification documents with reply cards

to approximately 19 million customers to confirm their intentions and received over 1 million replies. We completed responding to customers as of the end of March 2020, except for cases that could not be finished due to reasons attributable to customers. We continue responding to customer requests, such as the requests for compensation for disadvantages experienced, including those that could not be finished due to reasons attributable to customers.

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1. Status of progress of additional investigations of all insurance policies

• Status of progress of investigations of multiple policies
  In regard to investigations of multiple policies, we finished responding to customers, except

for the cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including cases that could not be finished due to reasons attributable to customers.

We are making progress in the investigation of the customers who are to receive priority responses (897 policyholders)*1 from February 2020 and other customers (5,532 policyholders)*2. 6,369 customers (99%)*3 have confirmed their policy coverage, as of May 31, 2021. Of this number, 2,790 customers (44%) have requested compensation for their policies, and we have finished compensation for 2,707 customers (43%).

*1. Customers who have applied for 15 or more policies, of which half or more have been cancelled, in the last five years (from April 2014 to March 2019; the same hereinafter).

*2. Customers who have applied for 10 or more policies, of which 30% or more have been cancelled, in the last five years.

*3. Including the number of customers to whom we resent letters for reconfirming.

• Status of progress of Investigations other than the above investigations of multiple policies
  In regard to the investigations other than the investigations of multiple policies, we have contacted customers who have policies with high insurance premiums or who had changes of the insured or type of insurance when enrolling in new policies through visits by staff of Japan Post Insurance or sending letters explaining policy status to confirm the policy coverage, in proportion to the amount of premiums and the number of times policies were rewritten. We have completed responding to customers, except for cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including cases that could not be finished due to reasons attributable to customers.
  We have made progress in the investigation in regard to the customers who have paid monthly premiums of 200,000 yen or more (5,103 policyholders)*1. 5,080 customers (approximately 100%)*2 have confirmed their policy coverage as of May 31, 2021. Of this number, 1,977 customers (39%) have requested compensation for their policies, and we have finished compensation for 1,897 customers (37%).
  In regard to the investigation of the customers who had multiple changes of the insured or the type of insurance and enrolled in new policies (2,650 policyholders)*3,4, 2,608 customers (98%)*2 have confirmed their policy coverage as of May 31, 2021. Of this number, 845 customers (32%) have requested compensation for their policies, and we have finished compensation for 813 customers (31%).
  Also, we have made progress in the investigation in regard to the customers who have paid monthly premiums of 100,000 yen or more (14,059 policyholders)*5. 14,030 customers

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(approximately 100%)*2 have confirmed their policy coverage, as of May 31, 2021. Of this number, 1,176 customers (8%) have requested compensation for their policies, and we have finished compensation for 1,092 customers (8%).

In regard to the investigation of the customers who had a single change of the insured or the type of insurance and enrolled in a new policy, and the customers who used the policy rewriting system to shorten the maturities of existing contracts (32,814 policyholders)*6,7,8, 32,195 customers (98%)*2 have confirmed their policy coverage as of May 31, 2021. Of this number, 1,244 customers (4%) have requested compensation for their policies, and we have finished compensation for 1,159 customers (4%).

In addition, we sent notification documents with reply questionnaires again to customers who had not replied on July 30, 2020.

*1. As of December 2019, policyholders aged 65 or older who have paid monthly premiums of 200,000 yen or more, and have had at least 1 policy which was cancelled in a short period thereafter during the period from April 2014 to December 2019.

*2. Including the number of customers to whom we resent letters for reconfirming.

*3. In the last five years, cases where sales personnel led the policyholders to change the insured at new enrollment without a change in policyholder, but the new policy was cancelled multiple times in a short period thereafter.

*4. Cases where sales personnel led customers to repeat rewriting insurance ⇔ annuity multiple times.

*5. As of December 2019, policyholders aged 65 or older who have paid monthly premiums of 100,000 yen or more, and have had at least 1 policy which was cancelled in a short period thereafter during the period from April 2014 to December 2019.

*6. In the last five years, cases where sales personnel led the policyholders to change the insured at new enrollment without a change in policyholder, but the new policy was cancelled at once in a short period thereafter.

*7. In the last five years, cases where sales personnel led customers to rewrite from annuity to insurance.

*8. Cases where sales personnel led customers to shorten the maturity of existing policies and apply for a new policy, but the underwriting of the new policy was declined.

1. Status of the sales personnel investigations in connection with the additional investigations of all insurance policies and other investigations
   In regard to the sales personnel investigations in connection with the additional investigations of all insurance policies and other investigations, we have identified 672 sales personnel who had violated laws and regulations and 228 sales personnel who had violated internal rules as of May 31, 2021.
   Meanwhile the portion of investigations of multiple policies which have been implemented since 2019, we have completed except for one case which we cannot investigate due to a salesperson's sick leave.
   We have identified 85 sales personnel who had violated laws and regulations and have taken disciplinary actions in the form of termination of solicitation operations against 77 personnel (including 9 retired personnel subjected to penalties equivalent to termination of solicitation operations), and suspension of solicitation operations of 1 month to 6 months against 8 personnel.

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In addition to the above, we are executing for investigations to 292 sales personnel who have problems that they are related to cases including serious complaint, since March 2021.

We have investigated 10,689 sales personnel by letters who are not included in prior investigations in March 2021. We confirm the existence of problems in sales process by sales personnel answers and we are executing for investigations to 37 sales personnel who answered that their sales process had problems.

(6) Follow-up support activities to recover customer's trust

In addition to the above cases being investigated, as the support activities to recover customers' trust and to confirm policy coverage, we have carried out the confirmation activities for 12,104 customers who experienced policy rewriting since April 2019. We have completed responding to customers, except for cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including cases that could not be finished due to reasons attributable to customers.

12,064 customers (approximately 100%)* have confirmed their policy coverage. Of this number, 4,230 customers (35%) have requested compensation for their policies, and we have finished compensation for 4,182 customers (35%) as of May 31, 2021.

We also have conducted these activities for 34,201 customers with whole life insurance where the customer and the insured are different. We have completed responding to customers, except for cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including cases that could not be finished due to reasons attributable to customers.

34,007 customers (99%)* confirmed their policy coverage. Of this number, 1,295 customers (4%) have requested compensation for their policies, and we have finished compensation for 921 customers (3%) as of May 31, 2021.

And, we have carried out the confirmation activities for 9,907 customers with policies that were cancelled and rewritten after the payment period had ended. We have completed responding to customers, except for cases that could not be finished due to reasons attributable to customers. We will continue responding to customer requests, including cases that could not be finished due to reasons attributable to customers.

9,824 customers (99%)* confirmed their policy coverage. Of this number, 361 customers (4%) have requested compensation for their policies, and we have finished compensation for 268 customers (3%) as of May 31, 2021.

* Including the number of customers to whom we resent letters for reconfirming.

Through these support activities, we are listening carefully to customer's opinions and requests. Furthermore, we have sent "Notification of Policy Coverage" documentation to each customer in accordance with the month prior to his/her birthday from May 2021. (We have started sending

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