Four major non-life insurance companies have announced disciplinary action, including reductions in the compensation of their presidents and other executives, in response to problems with pre-adjustment of insurance premiums for commercial insurance.
The number of affected officers was 149 in all four companies, including the parent company, making this an unprecedentedly large-scale punishment.
Four major non-life insurance companies received a business improvement order from the Financial Services Agency in December last year for allegedly pre-adjusting insurance premiums in insurance contracts with companies and local governments, and submitted business improvement plans on February 29. did.
In order to prevent a recurrence, the company will review its evaluation methods for sales representatives and strengthen training, as well as eliminate cross-shareholdings with client companies in order to create a healthy competitive environment.
In addition, the four companies announced disciplinary action, including reductions in the compensation of their management teams, in order to clarify who was responsible.
The number of affected officers, including directors, executive officers, and executive officers, was 149, including those at the parent company, making this an unprecedentedly large-scale punishment.
Of these,
◇Tokio Marine & Nichido Fire Insurance has 57 executives, including those at the parent company, subject to punishment, including President Shinichi Hirose having his compensation reduced by 50% for three months.
◇At Mitsui Sumitomo Insurance, a total of 14 employees, including President Shinichiro Funabi, had his compensation reduced by 50% for three months.
◇ Aioi Nissay Dowa Insurance has 12 employees in total, including President Keisuke Niino, whose compensation will be reduced by 50% for three months.
◇ Sompo Japan Insurance Co., Ltd. has been punished in conjunction with the issue of fraudulent insurance claims by Big Motor.
▽Kengo Sakurada, CEO of the parent company's group, who is scheduled to retire at the end of March, will have his compensation reduced by 50% by six months.
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A total of 66 executives are affected, including
President Koji Ishikawa, who took office in February, who voluntarily returned 30% of his compensation for three months .
This issue highlights that the practice of pre-adjusting insurance premiums has become commonplace within the industry, and companies are required to establish systems to comply with laws and regulations through measures to prevent recurrence.