THE ASAHI SHIMBUN
September 19, 2023 at 15:05 JST
Investigators from the Financial Services Agency enter the headquarters of Sompo Japan Insurance Inc. in Tokyo’s Shinjuku Ward on Sept. 19. (Yuki Shibata)
Investigators searched the offices of Bigmotor Co. and Sompo Japan Insurance Inc. on Sept. 19 for evidence substantiating allegations of fraudulent auto insurance claims involving the two companies.
Personnel from the Financial Services Agency visited the used car dealer’s Tama outlet in western Tokyo as well as the insurance giant’s headquarters in the capital’s Shinjuku Ward that morning.
The agency will also conduct an on-site probe at Sompo Holdings Inc., the parent company of Sompo Japan, if necessary.
Sompo Japan and two other major insurance firms referred their policyholders to Bigmotor for vehicle repairs following an accident. In exchange, Bigmotor outlets sold auto insurance policies for the three companies.
In early 2022, the three insurers became aware of reports that Bigmotor employees were deliberately damaging cars brought into its shops or doing unnecessary repairs to inflate claims for insurance payouts.
All three companies asked Bigmotor to look into the allegations and stopped recommending the workshop chain to their policyholders in June that year.
Bigmotor admitted to the wrongdoing but denied the involvement or knowledge of its management in the shady practices.
While the other two insurers were not satisfied and asked for a more thorough investigation, Sompo Japan resumed steering its policyholders involved in accidents to Bigmotor.
The FSA suspects that Sompo Japan President Giichi Shirakawa decided to maintain the company’s give-and-take relationship with Bigmotor despite the reports of the fraudulent activities.
The agency finds this decision particularly problematic and its latest search is likely to focus on the background and circumstances behind it.
Shirakawa announced his resignation as president earlier this month. Bigmotor founder Hiroyuki Kaneshige also stepped down as president in July.
(This article was written by Yasuyuki Onaya and Kohei Higashitani.)
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