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

(Excerpt)

(Tuesday, November 7, 2023, 9:28 am to 9:36 am)

Q.

There were news reports that the Financial Services Agency (FSA) had started on-site inspection at Sompo Holdings, the parent company of Sompo Japan Insurance, concerning fraudulent car insurance claims by BIGMOTOR, a major seller of used cars. Please tell us about the facts that have been brought to light in these inspections, if any.

A.

Yesterday, we decided to conduct on-site inspection at Sompo Holdings under the Insurance Business Act concerning the recent fraudulent insurance claims, and on the same day, we informed the company of the decision and started inspection.
We have been carrying out on-site inspection at Sompo Japan since September of this year, but in this process, as we made in-depth inspections of problems in the company’s business management and administrative systems as well as its internal control systems, we found that it was also necessary to inspect Sompo Holdings, which has a certain responsibility for those systems of its subsidiary Sompo Japan.
For this reason, we recently decided to obtain a deeper understanding of the actual condition of Sompo Holdings through on-site inspection in order to clarify whether the parent company had appropriately managed and administered its subsidiary concerning fraudulent insurance claims.
Depending on the results of the on-site inspection, we will take strict action according to laws and regulations.

Q.

I would like to ask additional questions about on-site inspection at Sompo Holdings. You said that on-site inspection was decided and started the inspection yesterday, November 6. Please tell us about your expectation of how long it will take to complete the inspection. And may I understand that the inspection are being conducted with the likelihood of Sompo Holdings’ management being held responsible for the recent problems in mind?

A.

Yesterday, as I said earlier, the FSA decided to conduct on-site inspection, informed them of the decision, and started the inspection. And the personal visits will take place as soon as preparations are completed at the FSA and Sompo Holdings. And they will be carried out until the FSA has ascertained the actual condition of the company needed to determine the degree of its responsibility. The degree of Sompo Holdings’ responsibility depends on the results of the on-site inspection. Since the inspections are conducted from now on, I cannot say anything about it at this moment.