FSA Slaps 4 Major Nonlife Insurers with Biz Improvement Orders

Tokyo, March 24 (Jiji Press)--Japan’s Financial Services Agency issued business improvement orders to four major nonlife insurers on Monday for improperly obtaining information on rivals’ customers through their employees on loan to insurance agents.

The orders, based on the insurance business law, were issued to Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Inc., Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co.

The FSA urged the companies to submit business improvement plans by May 30. The agency determined that information leaks by employees on loan to insurance agents were inappropriate under the personal information protection law and the unfair competition prevention law.

The information leaks began in fiscal 2014 or earlier, and affected a total of 2.7 million sets of information at the four insurers.

The FSA also urged the four companies to drastically revise their existing business improvement plans, which they submitted last year in the wake of a price-fixing scandal involving insurance policies for corporate clients. It is rare for the FSA to seek revisions to a submitted plan.

[Copyright The Jiji Press, Ltd.]