Toyota Mobility, Good Speed Face Biz Improvement Orders

Tokyo, Jan. 24 (Jiji Press)--Japan's Financial Services Agency said Friday that it has issued business improvement orders to car dealer Toyota Mobility Tokyo Inc. and used car dealer Good Speed Co. under the insurance business law.

The FSA concluded that the Toyota Motor Corp. affiliate and Good Speed, both of which serve as insurance agents, had flaws with insurance sales or personal information management. It ordered the companies to submit improvement plans by Feb. 21.

The FSA criticized serious flaws in Toyota Mobility's internal controls, citing its management's mindset that the insurance business was not the firm's main operations. The agency also said that the company failed to give customers explanations about why it recommended certain insurance products.

The agency added that there may be more fraudulent insurance claims by the company than currently known, and urged it to conduct a fresh internal investigation.

In addition, the Toyota affiliate was found to have given a nonlife insurance company access to client data, resulting in the leak of 23,000 sets of personal information.

[Copyright The Jiji Press, Ltd.]