Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Friday, September 15, 2023, 13:31 pm to 13:49 pm)

[Opening remarks:]

I will continue to serve as Minister of Finance, Minister of State for Financial Services and Minister in charge of Overcoming Deflation．
In the field of financial services, I will also work with the ministries and agencies concerned to address a range of policy programs, especially to prepare by the end of the year a policy plan to prompte Japan as a leading asset management center.

[Questions and answers:]

Q.

Let me ask two questions. One is about the on-site inspection of BIGMOTOR and Sompo Japan, scheduled for September 19 next week. May I ask again what point or issue you will place the focus on at the inspection?

A.

As I stated before at a press conference, we are going to carry out on-site inspections, which are set to start on September 19.
Let me talk about Sompo Japan first. Through the on-site inspection, we will examine the background why only Sompo Japan resumed customer referrals, and why and how they adopted such a simplistic methodology for claims investigation, going into depth to find problems in their business management and internal control systems, in order to identify the root causes. We will carry out an in-depth examination to understand what really happened.
It has also turned out that BIGMOTOR made a series of fraudulent claims. First, we must find out all the facts about the cases. Then, we must examine how the fraudulent practices were allowed to happen and what lay behind them to recognize more in depth what really happened. I have instructed the office in charge to work on that.
Focusing on what I have now mentioned, we will work to ascertain all the facts about what BIGMOTOR and Sompo Japan were involved in.

Q.

The other question is about a related issue. You have just mentioned that the focus will be placed on their simplistic methodology for claims investigation. Would you please tell us more specifically what you have in mind as a problem to carry out the inspection and how it will be conducted?

A.

That will depend on what facts are revealed through the on-site inspection we are going to conduct. Generally speaking, insurers must also carefully review an insurance claim they receive to see whether it is legitimate. Sompo Japan adopted a simplistic methodology. In some cases, of course, although we won’t know before the inspection makes some progress, they might have paid the insurance just as claimed. If, instead of the full investigation they have to carry out, they adopted a simplistic methodology and performed imperfect investigations, that would mean the protection of policyholders failed, as a result. Whether that was the case is what we must make clear through the on-site inspection.