To lessen rent burden of property renters impacted by COVID-19, the FSC on April 1, 2020 invited the ROC Non-Life (and Life) Insurance Associations as well as their member institutions to discuss how to provide insurers temporary relief from regulatory requirements set out in the “Standards and Handling Principles for Determining What Constitutes Real Estate that Can Be Used Immediately With Reasonable Benefit.” On April 10, 2020, the FSC issued the following temporary measures:

1.Insurance companies will assess how badly tenants have been affected by COVID-19, and as necessary will enter into discussions with the tenants to work out rent relief measures, such as deferral, rescheduling, or reduction of rental payments.

2.An insurance company that acquires real estate that is in usable condition and for which a lease agreement has been signed is required to report the matter to the FSC in accordance with the “Standards and Handling Principles for Determining What Constitutes Real Estate that Can Be Used Immediately With Reasonable Benefit,” but if it provides rent relief to a distressed tenant in such a property, the insurer is eligible for regulatory relief under the aforementioned temporary measures until June 30, 2021. An insurer that has provided a rent reduction may file after-the-fact for regulatory relief.

3.Properties for which an insurer has applied for regulatory relief under the temporary measures need not be included among the properties where the occupancy rate and investment yield must be checked each month to see whether they meet regulatory requirements. This exemption makes it easier for insurers and distressed tenants to work out rent relief arrangements.