Independent panel slams Sompo’s “inappropriate” actions in Bigmotor case

Independent panel slams Sompo’s “inappropriate” actions in Bigmotor case

Independent panel slams Sompo’s “inappropriate” actions in Bigmotor case | Insurance Business Asia

Motor & Fleet

Independent panel slams Sompo’s “inappropriate” actions in Bigmotor case

Company’s actions were “too hasty”

Motor & Fleet

By
Kenneth Araullo

A recent assessment by an independent panel commissioned by Sompo has highlighted ill-considered decisions made by executives within a nonlife insurance unit pertaining to the Bigmotor fraud scandal.

According to a Nippon report, these decisions involved resuming business with the disgraced car dealer in July of the previous year, despite having knowledge of potentially fraudulent activities within the used car dealer’s insurance claims. The panel has called these actions “too hasty and inappropriate.”

Released as an interim report by Sompo, the findings of the panel were critical of the executives at Sompo Japan, particularly president Giichi Shirakawa, citing a lack of customer-centric approach and an undue emphasis on sales growth.

Sompo Japan had been involved in providing damaged vehicles to Bigmotor, which, in turn, determined the allocation of automobile liability insurance contracts based on the number of vehicles supplied by the nonlife insurer.

The report also shed light on the expedited reinstatement of business activities, attributing it to Sompo Japan executives’ concerns about losing business deals with Bigmotor to rival insurance companies.

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