Sompo Japan’s Parent Inspected over Bigmotor Insurance Fraud

Tokyo, Nov. 7 (Jiji Press)–Japan’s Financial Services Agency has begun an on-site inspection of Sompo Holdings Inc. as part of its probes into automobile insurance fraud by used car dealer Bigmotor Co., a government official said Tuesday.

The FSA on Monday warned Sompo Holdings of the inspection under the insurance business law, financial services minister Shunichi Suzuki told a press conference.

Sompo Holdings is the parent of Sompo Japan Insurance Inc., Bigmotor’s business partner embroiled in the scandal.

The FSA is inspecting Sompo Japan from September. The agency found it necessary to carry out a detailed investigation into the parent in order to get to the heart of the matter.

The financial industry watchdog will check whether Sompo Japan supervised the management of Sompo Japan appropriately, Suzuki said.

[Copyright The Jiji Press, Ltd.]