Regulator urges Sompo Japan to address corporate culture after Bigmotor scandal: Report

Bigmotor was involved in charging excessive repair fees.

The Financial Services Agency (FSA) of Japan called out Sompo Japan Insurance Inc. and its parent Sompo Holdings Inc. to refine their operations amidst Bigmotor Co.’s insurance scandal, reported The Mainichi.

The FSA revealed that despite being aware of fraudulent insurance claims made by the dealership, Bigmotor Co., the major insurance group continued its business relationship with them.

The regulator has demanded corrective measures to address the corporate culture prioritising profit over customer interests, and to enhance management responsibility and legal compliance.

ALSO READ: Sompo Japan’s Chief steps down amdist Bigmotor misconduct

Bigmotor was involved in charging excessive repair fees through intentional vehicle damage and fraudulent insurance claims.

The scandal prompted several major insurance firms to sever ties with Bigmotor in 2022, but Sompo Japan resumed business with the company later that year.

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