Japan passes law to lower payouts on policies

TOKYO: Japan's Parliament has passed a law allowing ailing insurers to lower payouts promised to policyholders, a step that could provide much-needed relief to a financial sector that has been hit hard by the country's near-zero interest rates. 

The upper house last Friday approved the legislation, which gives Japanese life insurers the option of cutting yields on policies without first having to file for court protection from creditors. Previously, insurers had to file for bankruptcy before they could take such measures. The law will take effect as early as next month.