The Japanese government has directed four major non-life insurance companies to amend their business practices following allegations of anti-competitive behaviour.
According to Reuters, finance minister Shunichi Suzuki announced that the order targets Aioi Nissay Dowa Insurance, Sompo Japan Insurance, Tokio Marine & Nichido, and Mitsui Sumitomo Insurance.
These companies were previously asked to report to the regulatory body about potential collusion in setting contract terms for clients. The allegations suggest that the insurers may have engaged in prior consultations among themselves, which could influence premium rates.
In response to the government's directive, all four insurance companies issued statements acknowledging the seriousness of the order and expressed their commitment to regaining public trust.
The finance minister emphasised the importance of clear accountability within the companies' management structures and the need for comprehensive reforms in management controls. He pointed out that the activities of these insurers were largely inconsistent with the principles of Japan's antitrust law.
Suzuki said that the government expects each company to take this issue seriously and implement effective measures to prevent similar incidents in the future. The situation reflects a broader effort by Japanese authorities to ensure fair competition and transparency within the insurance sector.
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