Sompo Japan Prearranged Premiums for 385 Companies

Jiji Press

10:55 JST, June 17, 2024

TOKYO (Jiji Press) — Sompo Japan Insurance Inc. inappropriately prearranged with other nonlife insurers premiums for contracts with a total of 385 corporate clients in possible violation of the antimonopoly law, a report by an external investigation committee has shown.

The malpractice was found to have been conducted at about 80% of the company’s sales offices.

The committee also discovered cases in which Sompo Japan management was involved in the misconduct, warning that a similar scandal may occur unless the firm carries out drastic structural reforms.

It concluded that 96 of the company’s 125 sales offices inappropriately prearranged premiums with other insurers and said that the practice was commonplace mainly among sales personnel.

Staff obtained, from other companies, the terms and conditions of insurance contracts and shared them internally, the committee said.