GIAJ’s Chairman shares major initiatives to address shortcomings in the industry

It emphasises preventative measures against fraudulent insurance claims and prove-fixing practices.

Keisuke Niiro, chairman of the General Insurance Association of Japan (GIAJ) said in a statement his apologies for the inconvenience and distress caused to their customers and related parties due to fraudulent insurance claims by Bigmotor Co. and price-fixing practices. 

Regarding the fraudulent claims, member companies that conducted business with Bigmotor Co. are actively addressing the concerns of affected customers and those worried about past repairs related to this incident. 

GIAJ is analysing the root causes and taking steps to prevent a recurrence. For price-fixing practices, each member company is assessing the situation and implementing preventive measures.

To address these issues, the association is committed to the following actions:

Fraudulent Insurance Claims by Bigmotor Co.:

• Customer Communication: GIAJ has set up a special website to provide customer notices and responses from member companies. Contact information for each member company is also available.
• Correction of Premium Grades: GIAJ is considering measures to streamline the correction process for automobile insurance premium grades, especially in cases where policyholders have moved to another insurer.
• Enhanced Fraud Prevention Measures: GIAJ is reviewing and improving its fraud prevention measures, including information exchange systems and hotlines, to facilitate swift and effective responses to fraudulent claims.
• Revised Guidelines: GIAJ plans to revise the "Guidelines on general insurance claims payment" to include additional considerations for insurers when handling claims and introducing repair shops.

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Price-Fixing Practices:

• Past Antitrust Responses: GIAJ are reviewing and enhancing past responses to antitrust laws, with each member company committed to ensuring strict compliance.
• Revised Policy on Antitrust Compliance: Based on investigation findings and feedback from authorities, GIAJ will revise its policy on antitrust law compliance to emphasize key points, such as coinsurance.

In conclusion, GIAJ acknowledges the gravity of these issues and is committed to restoring trust in the general insurance industry. Its priority is customer-centricity, and GIAJ will vigorously address the concerns while upholding the highest standards of compliance and integrity. Thank you for your understanding and support.