Four major non-life insurance companies submitted business improvement plans to the Financial Services Agency on the 29th in response to problems with pre-adjustment of insurance premiums for commercial insurance, and ordered the presidents and other executives to be disciplined, including reductions in remuneration. The policy is to do so.
It is expected that more than 10 officers will be affected, including those at the parent company, making this an unusually large-scale punishment.
It has been revealed that Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance, Mitsui Sumitomo Insurance, and Aioi Nissay Dowa Insurance had pre-adjusted insurance premiums in insurance contracts with a total of 576 companies and local governments. The Financial Services Agency issued a business improvement order in December last year.
In response, the four companies will submit business improvement plans on the 29th.
The Financial Services Agency pointed out that the training and supervision of sales personnel was insufficient and that there was a lack of awareness of risks, so the plan includes reviewing evaluation methods and training for sales personnel to prevent recurrence. This will include enhancements to the
In addition, we will create a healthy competitive environment by eliminating cross-shareholdings with client companies.
In addition, the four companies plan to punish the presidents and other executives, including reducing their compensation, in order to clarify who is responsible.
The number of affected executives is expected to exceed 10 in each case, including those at the parent company, making this an unusually large-scale punishment.
Of these, Sompo Japan Insurance is expected to be punished in conjunction with the issue of fraudulent insurance claims by Big Motor.