Insurance

FSA sanctions four non-life insurers

Norbert Gehrke

Norbert Gehrke

— 2 min read
FSA sanctions four non-life insurers

The Financial Services Agency (FSA) has issued business improvement orders to four non-life insurance companies, namely Tokio Marine & Nichido Fire Insurance, Aioi Nissay Dowa Insurance, Sompo Japan Insurance, and Mitsui Sumitomo Insurance, pursuant to Article 132, Paragraph 1 of the Insurance Business Act concerning incidents of customer information leakage.

The following summarizes the business improvement orders for Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance. The orders for the other two carriers are largely similar.

  • Implement the following actions in order to ensure the sound and appropriate management of operations.
    • Establishment of an appropriate legal compliance system to comply with the Personal Information Protection Act and the Unfair Competition Prevention Act
    • Establishment of appropriate customer information management systems at MSI and ADI (including secondees) and insurance agencies
    • Establishment of management systems to assess risks associated with the characteristics of the business model and the advanecment of management strategies, and to implement timely and appropriate countermeasures
    • Formulattion of a business improvement plan related to the above three points. In addition, based on the root cause analysis conducted in the case of price-fixing issues, conduct a root cause analysis of the inappropriate cases that have successively occurred, and fundamentally review the business improvement plan (submitted in February 2024) formulated and implemented in accordance with the business improvement order dated December 26, 2023, with respect to the following items:
      • Fostering a healthy organizational culture that emphasizes compliance and customer protection
      • Establishing appropriate management systems for the secondments to independent agents
      • Strengthening management systems to ensure the steady execution and establishment of business improvement plan
  • Regarding the first point, receive a review of the formulation and implementation of the business improvement plan by external experts with specialized knowledge of the insurance industry and corporate governance.
  • Clarify the management responsibility based on the results of the root cause analysis conducted in accordance with the above.
  • Submit the business improvement plan related to the above (1), (2), and (3) by May 30, 2025, and implement it immediately.
  • Report the progress and improvement status of the improvement plan mentioned above (4) every three months by the 15th of the following month (initial reporting base date : end of August 2025).

Read our previous coverage on the business conduct issues in the non-life insurance sector:

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