Changes are afoot in the Japanese insurance industry as it plans to abandon the traditional practice of secondments to agencies, as per the recent news headlines. The fundamental shift comes amidst increasing regulatory pressure and the need for business model innovation. While the exact timeline for the implementation of this principle is yet to be made clear, the move signals a significant transformation in Japan's life insurance sector.

In Japan, secondments from insurance companies to agencies have been an ingrained part of operating procedures, creating a multi-layered distribution system. It reflects the mix of business and social values imbued within Japanese work cultures. However, with this paradigm shift, the focus could pivot towards a more efficient, transparent model that mirrors the broader global trend in insurance sectors.

In the U.S or EU, life insurance sectors often maintain clear organizational lines between insurance providers and intermediaries to turn conflicts of interest to a minimum. Changes in Japan could see their insurance sector coming in line with these Western models, favoring direct engagement with customers over intermediary relationships.