The online life insurer has suspended new applications and other functions of au no Seimei Hoken, the product KDDI sells as its agent, while the two companies investigate.
Insurers must submit improvement plans by the end of November, and the regulator will check how they applied tighter assumption rules in their 2026 year-end liability valuations.
The proposed regime would give the FSC broad intervention powers, including contract transfers, third-party takeovers and capital reductions, while excluding reinsurers from its scope.
The Australian insurer has also set a new supply chain engagement goal, while its FY26 annual report shows community investment rose 22% to A$10.8m (US$7.6m).
Policyholders of Cigna, Great Eastern, HSBC Life, Income Insurance, Singlife and Tokio Marine among those affected by the attack on the third-party administrator.