Prudential Life Insurance, formerly renowned in Japan for its philosophy-driven business model, is now embroiled in a fraud scandal that has highlighted the risks of a remuneration system that is fully commission based within the industry.
The company is under fire over the fraudulent activities of a sizable proportion of its employees. The company revealed last month that 107 of its former and current employees had defrauded around 500 customers of a total ?3.1 billion ($20 million) between 1991 and 2025.
As of Monday, an additional 300 complaints have been filed by customers since Prudential set up a committee on Jan. 23 to take charge of compensating affected individuals. The company is currently investigating the new complaints.
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