The Financial Services Agency (FSA) of Japan has ordered Sompo Japan, Tokio Marine & Nichido Fire, Mitsui Sumitomo, Aioi Nissay Dowa, and four other midsize insurers to submit reports over car dealer Bigmotor’s fraudulent vehicle insurance claims.
As part of the ongoing probe, the FSA will also continue to investigate Bigmotor’s operations as an insurance agent. In addition, the regulator will examine the relations between the car dealer and the seven insurers and investigate whether the insurers have had any issues in terms of protection for their policyholders.
According to a report from Nippon, the seven included the four major insurers listed prior, as well as three other mid-level insurers, one of which is Kyoei Fire and Marine Insurance.
Should the regulator find any evidence of wrongdoing, it may issue business improvement orders. The worst comes in the form of revoking the registration; Bigmotor may lose its certification as an insurance agent.
Recently, Sompo Japan, one of the major insurers named in the investigations, has said that it will be seeking damages from Bigmotor because of the fraud scandal. The insurer has also apologized for not following up on earlier reports of suspicious activity in the car dealer’s lots.
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