Japan regulator orders Sompo to improve compliance over fraudulent Bigmotor claims
25/01/2024 08:15
TOKYO, Jan 25 (Reuters) - Japan's financial regulator on
Thursday ordered Sompo Holdings 8630.T to improve compliance
and governance over its "inappropriate handling" of insurance
claims from used-car dealer Bigmotor.
The Financial Services Agency's order comes after the
non-life insurer was found to have conducted lax screenings of
fraudulent claims from Bigmotor, a key business partner and a
revenue source.
Sompo said in a statement that the company would seriously
reflect on the situation, work to prevent recurrences and regain
public trust.
Local media also reported that Sompo CEO Kengo Sakurada, an
influential business leader who also chaired the Japan
Association of Corporate Executives, would step down at the end
of March following the scandal.
Sompo said nothing had been decided on the resignation.
(Reporting by Makiko Yamazaki; Editing by Varun H K)
((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))