The four major non-life insurance companies had adjusted their corporate insurance premiums in advance, and the Financial Services Agency (FSA) is making adjustments to the four companies by the end of the year to issue business improvement orders based on the Insurance Business Act.
The Financial Services Agency (FSA) is coordinating with four companies in the direction of issuing business improvement orders: Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance.
In September, the four companies reported to the Financial Services Agency that they had found problems with insurance contracts with more than 4 business partners, including airport operators and oil companies, after it was discovered that these four companies had adjusted insurance premiums for corporate insurance in advance.
According to the people involved, the FSA is coordinating with the four companies to issue business improvement orders based on the Insurance Business Act by the end of this year.
The Financial Services Agency (FSA) considers the rampant advance price adjustment among the four major companies, which account for 4% of the sales of insurance premiums in the non-life insurance industry, as a problem, and will ask each company to correct the practice that has continued in the non-life insurance industry and change to an appropriate business management system in the future.