The Financial Supervisory Agency plans to oblige life and nonlife insurance companies to disclose the same information on their bad loans as banks are required to, agency sources said Friday.
The step, which will apply to earnings results for the current fiscal year, ending this month, is intended to increase the transparency of insurers' business operations, the sources said.
The FSA, the nation's financial industry watchdog, will oblige insurers to supply in their financial statements more information on the financial and business conditions of debtors when reporting on bad loans.
The nation's life insurers had bad loans totaling 1.33 trillion yen, or 2.3 percent of their total lending, at the end of fiscal 1998.
The government has recently intensified efforts to maintain the stability of the insurance sector.
Earlier this month, legislation aimed at strengthening the safety net for life insurers was submitted to the Diet.