Press Conference by Taro Aso, Deputy Prime Minister, Minister of Finance, and Minister of State for Financial Services

(Excerpt)

(Wednesday, February 12, 2014, 8:38 am to 8:44 am)

[Questions and answers]

Q.

Regarding the non-payment of fringe claims by Tokio Marine & Nichido Fire Insurance, on the 7th of this month it is reported that there had been a maximum of 120,000 fringe claim non-payment cases. Furthermore, following an internal investigation, the company announced on the 10th that there may be as many as 30,000 additional cases. If a proper investigation had been conducted when a certain news organization first pointed out this issue last year, this announcement of additional cases would probably not have occurred, and I think this approach may lead to distrust among policyholders. What’s your opinion, Minister?

A.

Although I’m aware that Tokio Marine & Nichido Fire Insurance made an additional public announcement on the 10th, with regard to its content, we’re still in the process of confirming the facts, so I don’t feel I can comment at this stage. Generally speaking, however, I recognize that from the standpoint of protecting policyholders, insurance companies need to provide accurate information in a timely fashion. So we expect them continue to do so in the future.

Q.

This Tokio Marine’s issue was first reported on the 6th, with the company’s president holding a press conference on the 7th, so please tell me how the FSA understood the way the company dealt with this type of fringe claims payable in the FSA’s investigation at that time. What kind of investigation the FSA conducted?

A.

We’re still in the process of confirming the facts, so I’d prefer not to comment at this stage.

Q.

So the president of a private-sector company held a press conference a day after the issue came to light, yet the FSA’s investigation is still taking more time?

A.

This goes back around ten years, so I think it’s going to take time to confirm the facts.

(End)