Yamato Life Insurance Co.'s decision to file for bankruptcy protection sent shock waves throughout the industry Friday as it became the first major victim in Japan of the global financial crisis.
But industry sources said policyholders shouldn't panic because their policies are guaranteed by an industry safety net. It is the industry's first bankruptcy in seven years.
The Tokyo District Court will appoint a group of administrators to manage the midsize insurer, which has a workforce of 1,011. The administrators will then find a sponsor to rehabilitate Yamato Life and take over its business and contracts.