(1) PURPOSE OF THE LAW AND SYSTEM
Recognizing the public nature of insurance business, this law aims at contributing to the stability of people's lives and sound development of the national economy by promoting the protection of policy holders through ensuring sound and appropriate business operations of insurance companies fair solicitation of insurance policies.

(2) OUTLINE OF THE LAW AND SYSTEM
A joint-stock company or a mutual company engaging in the insurance business may switch its organizational form to either form (Articles 68 and 85).
The amount of an insurance company's capital shall not be less than one billion yen (Article 6).

(3) CABINET ORDER AND MINISTERIAL ORDINANCES
Enforcement Order of the Insurance Business Law
Enforcement Regulations of the Insurance Business Law

(4) OUTLINE OF THE CONTROL
1) Items Covered
Companies engaging in the insurance business (life insurance companies, non-life insurance companies, mutual companies, foreign insurance establishments, foreign insurance companies, foreign life insurance companies, foreign non-life insurance companies and foreign mutual companies, etc.)

2) Outline of the Control
None shall engage in insurance business unless licensed by Prime Minister (Article 3). The assets of an insurance company shall not exceed the amount determined by Ordinance of Cabinet Office (Article 97-2).

(5) HIGHLIGHTS OF THE RECENT AMENDMENTS
1) Expansion of the coverage to Kyosai which undertakes quasi-insurance business for a specified group of persons (the so-called 'unregulated Kyosai' which were not under the auspices of the Insurance Business Law intended for businesses targeting the general public), thereby in principle bringing them under the policyholder protection rules.

2) Revision of the safety net for life insurance sector (variable guarantee depending on the type and the terms and conditions of the policy; retention of government subsidy provision until 2008)

(6) REFERENCE INFORMATION
(Liaison Office for Further Information)
Financial Services Agency
Tel: 03-3506-6000 http://www.fsa.go.jp