Japanese general insurer Aioi Nissay Dowa is alleged to have consulted with another industry peer prior to bidding for a contract for insuring Keisei Electric Railway, further bolstering purported cartel activities.
A few weeks ago, the insurer and three others – Tokio Marine & Nichido Fire, Sompo Japan, and Mitsui Sumitomo – were alleged to have formed a cartel to adjust fire insurance premiums Tokyu Corp., a railway and real estate group.
A report from Japan News alleged that Aioi Nissay met with and asked Sompo, which led the bidding process, about other bidders’ insurance premium levels for the contract before the bidding with Keisei began. This was done so that Aioi Nissay could avoid presenting more expensive premiums than its peers and is considered an infringement of the antimonopoly law. Both Tokio Marine and Mitsui Sumitomo were also present at the bidding.
A spokesperson for Aioi Nissay said that the insurer is currently confirming the facts and refused to elaborate further.
Elsewhere, Sompo, Tokio Marine & Nichido Fire, and Mitsui Sumitomo are facing another scandal entirely as the regulators are now investigating their involvement in car dealer Bigmotor’s company-wide insurance fraud.
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