In the case of fraudulent insurance claims by Big Motor, the contents of the final report compiled by the investigative committee on Sompo Japan's response have been revealed. In addition to stating that the failure of the compliance system was a factor, the report also pointed out that the parent company lacked a proactive and leadership stance and was not sensitive to risks.
In this matter, it has been revealed that in July 2022, 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.
In the final report compiled by an investigative committee comprised of outside lawyers, it was found that the executives' awareness of the risks was decisively poor, and that the biggest institutional factor was the dysfunction of the compliance system.
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.
The final report is expected to be released on the 7th.
In response to this issue, the Financial Services Agency (FSA) is coordinating with Sompo Japan Insurance and Sompo Holdings to issue business improvement orders in accordance with the Insurance Business Act by the end of the month, and the focus will be on how to deal with them, including management responsibility.