Prudential Financial Inc.’s Japan head has promised stronger governance after an internal probe found over 100 current and former employees engaged in improper actions. The misconduct cost customers approximately $20 million, triggering a formal review of the unit’s practices and procedures.

The findings highlight persistent challenges in Japan’s insurance sector, where aggressive sales tactics have long drawn regulatory scrutiny. For Prudential, the incident damages its reputation in a key foreign market and could invite closer oversight from local financial authorities, impacting future business strategies.

Japan’s Financial Services Agency is expected to monitor Prudential’s remediation efforts closely. Investors will watch for any financial penalties or operational restrictions. The company’s ability to restore trust may determine its competitive standing against domestic rivals like Nippon Life and Dai-ichi Life.