FSA gearing up for Sompo, Bigmotor on-site inspections

Expect strict response if any problems are found, minister says

FSA gearing up for Sompo, Bigmotor on-site inspections

Motor & Fleet

By Kenneth Araullo

Financial Services Agency (FSA) of Japan minister Shunichi Suzuki announced that onsite inspections of the disgraced car dealer Bigmotor and its primary business collaborator, Sompo Japan, are set to commence on September 19.

The FSA had informed both companies of its intention to conduct these inspections concerning the insurance fraud scandal involving the significant used car dealership, according to a Nippon report.

“We want to identify the root cause of the problem by also examining their management systems,” Suzuki said, adding that a strict response will be merited if any issues are found in terms of protection for policyholders.

The scandal reached its peak last week when Giichi Shirakawa, president of Sompo Japan, tendered his resignation.

Under Shirakawa’s leadership, the nonlife insurance company resumed the practice, in July last year, of referring its clients to Bigmotor, despite being aware that the results of an internal investigation at Bigmotor had been tampered with.

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