Japan’s Financial Services Agency plans to conduct on-site inspections of Bigmotor Co and Sompo Japan Insurance as early as mid-September as part of an investigation into fraudulent auto insurance claims by the used car dealer.
The FSA has received reports from seven non-life insurers, including Sompo Japan, and Bigmotor. Through the on-site inspections, the agency will investigate the scandal in detail, reported Jiji Press.
If problems are found in terms of protecting policyholders, the FSA will consider issuing administrative punishments, such as business improvement orders.
Bigmotor and Sompo Japan have had close relations as the car dealer had received many employees on loan from the nonlife insurer.