Prudential Life Insurance says it has set up a panel of outside experts to look into financial misconduct by its employees and pay back money to affected people.
The Japan unit of US company Prudential Financial on Friday held a news conference for the first time since it made the scandal public this month.
More than 100 former and current employees defrauded customers and profited from selling non-company financial products. They are believed to have wrongfully obtained 3.1 billion yen, or about 20 million dollars.
Prudential Life Insurance President Mabara Kan apologized to the affected customers for employee misconduct over the years.
He said the company will fully compensate for the losses confirmed by the panel if staff members were involved in the misconduct while employed.
Full compensation will be paid even for misconduct by employees after they left the company, if deemed necessary by the panel on a case-by-case basis.
The panel will also review cases for which the company once concluded there was no need for compensation.
The insurer acknowledged that its remuneration system excessively linked to performances was behind the misconduct, and said it will work to reform the system.
Employees involved in the scandal are said to have used the money for living expenses or on luxury cars and wristwatches.
Mabara said the company will draw up effective preventive measures focusing on three pillars: revising remuneration and other systems for sales personnel; improving the management and oversight system; and improving organizational culture.

Quiz 1:
What is the primary purpose of the panel established by Prudential Life Insurance?
A. To publicly denounce former employees involved in the misconduct.
B. To investigate financial misconduct by employees and compensate affected people.
C. To determine the total value of luxury items purchased by employees.
D. To analyze the broader financial market conditions that led to the scandal.

Quiz 2:
Approximately how much money (in yen) did the employees allegedly wrongfully obtain?
A. 20 million yen
B. 100 million yen
C. 3.1 billion yen
D. 1 billion yen

Quiz 3:
According to Mabara Kan, what was a contributing factor to the employee misconduct?
A. An excessive link between remuneration and performance.
B. A lack of oversight from senior management.
C. Insufficient training for new employees.
D. A company policy promoting aggressive sales tactics.

[Answer block]
Answers:
Quiz 1: B
Quiz 2: C
Quiz 3: A