The final report compiled by the investigative committee on Sompo Japan's response to the problem of fraudulent insurance claims by Big Motor has been released. In addition to stating that the failure of the compliance system was a factor, it also pointed out that the parent company lacked a proactive and leadership stance and was not sensitive to risks, and that the focus will be on how to respond including management responsibilities in the future.
In this matter, it has been revealed that in July, the management of Sompo Japan Insurance was aware of the possibility of fraud at Big Motor, but resumed transactions that had been temporarily suspended without further investigation.
The final report of the investigative committee of outside lawyers, released on the 7th, concluded that the executives' awareness of the risks was decisively poor, and that the dysfunctional compliance system was the biggest institutional factor.
In addition, even if a problem arises, there was a strong desire to solve it in a self-contained manner without relying on the parent company, Sompo Holdings.
In addition, it was pointed out that Sompo Holdings did not pursue any particular activities or proactively collect information, but only took a passive stance, lacked a proactive and leadership stance, and was not sensitive to risks.
In this regard, Sompo Japan Insurance President Yoshikazu Shirakawa announced his resignation at a press conference in September last year, and Sompo Holdings Group CEO Kengo Sakurada indicated that he would make a decision on responsibility based on the results of the investigation.
The Financial Services Agency (FSA) is coordinating with the two companies to issue business improvement orders based on the Insurance Business Act by the end of the month, and the focus will be on how to deal with them, including management responsibility.