Due to the issue of fraudulent claims for insurance claims by Big Motor, the Financial Services Agency will conduct on-site inspections of Sompo Japan Insurance and Big Motor from the 19th. In addition to the actual situation of fraudulent claims, we will also take a closer look at how Sompo Japan Insurance resumed transactions last year while recognizing the possibility of fraud.
Regarding Sompo Japan Insurance, we know that in July last year, management resumed transactions that had been temporarily suspended despite being aware of the possibility of fraud, and in 7, they simplified damage assessments by setting up an in-house team to deal with big motors.
In this on-site inspection by the Financial Services Agency, we will investigate in detail whether there were any problems with management's decisions and interactions with Big Motor, and will also investigate whether the governance system of the Group, including Sompo Holdings, the parent company of Sompo Japan Insurance, was functioning.
In addition, for Big Motor, as an insurance sales agent, we will investigate whether there are any problems with customer protection.
At a press conference on March 2019 ahead of the on-site inspection, Minister for Financial Services Suzuki stated, "We will proceed with a deep understanding of the actual situation in order to identify the root cause of the problem," indicating that the inspection will be conducted in light of issues related to management and internal management systems.