The Japanese Post is questioning about the stoppage of insurance sales as a result of mismanagement reports

Japan Post Co. plans to suspend the commission sale of insurance products from private companies such as Nippon Life Insurance Co. through country post offices, sources said.

This decision comes after last month's revelation of improper sales practices by Japan Post employees regarding Japan Post Insurance Co.'s products.

The company, which has already suspended sales of Japan Post Insurance products, has begun negotiations with insurers such as Nippon Life and Sumitomo Life Insurance Co.

If the firm decides to suspend all insurance sales, it will probably affect the finances of Japan Post Holdings Co.

Japan Post Holdings President Masatsugu Nagato and other leaders of the group are expected to present their plans at a press conference on Wednesday.

Nippon Life has asked the Japanese Post to temporarily halt the sale of a variable annuity insurance product denominated in a foreign currency of the insurer. Aflac Life Insurance Japan Ltd. decided not to suspend commission sales because a quarter of the insurer's new contracts are signed by post offices operated by Japan Post.

The Japan Post Holdings Group has created a special investigative committee of external lawyers to investigate the nature and causes of the problem. A report is expected by the end of the year.

Irregularities, such as customers having to pay twice as much, have been discovered for about 93,000 contracts. The number may increase significantly as the survey progresses.

Companies such as Nippon Life and Sumitomo Life have opened their own investigations into potential inappropriate sales practices at post offices for their ordered products. Sales methods such as sales quotas imposed by post offices are considered the root causes of the problem, a source said that it would be difficult to continue sales.

The Japanese Post has already decided to refrain from selling its products until the end of the month of August. However, some members of the Japan Post Holdings group said sales may not restart before the end of the investigation report at the end of the year.