Japan's Financial Services Agency (FSA) is set to rescind the insurance agent registration of Bigmotor on Nov. 30, following the exposure of fraudulent activities in the company's auto insurance claims, as stated by Shunichi Suzuki, the financial services minister.
According to a report from Nippon, this represents the most severe administrative penalty placed on Bigmotor, reserved for insurance agents. The authority will consider the company's response in a hearing scheduled for Nov. 21 before finalising the penalty.
During an on-site inspection conducted under the insurance business law, the FSA discovered that Bigmotor had failed to implement a suitable insurance sales system, Suzuki revealed in a press conference.
Suzuki also said that, considering non-life insurers opting to terminate their agency contracts with Bigmotor, the used car dealer is unlikely to receive support from these insurers in efforts to reconstruct its business. This situation arises from the significant trust deficit created by the company's malpractices.
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