As per a report from Bloomberg, Japan’s Financial Services Agency has issued business improvement orders on the core units of Tokio Marine Insurance, MS&AD Insurance, and Sompo Japan Insurance for “colluding to fix prices” in contracts with corporate clients.
Japan’s Finance Minister, Shunichi Suzuki, stated in a recent briefing it is “regrettable” that Sompo, Tokio Marine, and MS&AD had engaged in price-fixing, urging the firms to “take drastic measures” to prevent a recurrence.
“The inappropriate behaviour was widespread, repeated, and continuous, which I think was highly malicious,” Suzuki added.
According to Bloomberg, the subsidiaries of both Tokio Marine and Sompo Japan said in response that they will make companywide efforts to improve their business operations.
Representatives for Mitsui Sumitomo Insurance and Aioi Nissay have yet to comment.
Bloomberg observed that business improvement orders are one of the most common penalties issued by the regulator for failures of internal controls and legal compliance at financial institutions.
The receiving entities are reportedly tasked with submitting progress reports on steps taken.
