Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Friday, July 28, 2023, 11:15 am to 11:29 am)
 

Q.

I have a question about the fraudulent practice problem of BIGMOTOR. Concerning the problem, it has turned out that Sompo Japan had been informed by an employee lent by the insurer to BIGMOTOR of possible fraudulent practices the company had engaged in. However, Sompo Japan allowed transactions to be resumed with BIGMOTOR.
Has the Financial Services Agency (FSA) recognized such acts of Sompo Japan? Are you going to inquire the company on the issue?

A.

Regarding BIGMOTOR, we are working to determine all the facts. The Kanto Local Finance Bureau is set to have an interview today with BIGMOTOR, as an insurance agent.
We are also making inquiries to Sompo Japan and other non-life insurers who have delegated BIGMOTOR to sell their policies to determine all the facts. Based on findings of the interview today with BIGMOTOR and other information, we will continue working to examine issues that must be confirmed, including what you have pointed out, such as the issue of employees insurers lent to BIGMOTOR.
If the collecting facts show anything lacking in policyholder protection, we will take strict measures based on laws and regulations.

Q.

You said an interview is to be held with BIGMOTOR "today". Did you mean "today in the afternoon"?

A.

An interview is being held today. For more details, the FSA staff would be able to answer your questions later.

Q.

You have mentioned an interview you are going to have. I understand the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is carrying out today on-site inspections at establishments affiliated with BIGMOTOR. Is the FSA considering whether to perform on-site inspections or any similar actions? Could you let me know about that?

A.

I suppose that actions we will take according to laws and regulations must be implemented in phases. We should refrain from suggesting any speculation. We must follow certain steps, determining all the facts first, before deciding what should be done. 

Q.

I understand work is underway to determine all the facts. In fact, there are some media reports that Sompo Japan has filed some false reports. Would you let me know whether you have confirmed the fact?

A.

I am also aware of the media reports you have mentioned. As I have just mentioned, work is underway to find all the facts. I suppose I must refrain at the moment from referring to what the insurer said in the reports, as the work is still in progress. However, once all the facts are determined, we will take action. If we find anything lacking in policyholder protection during the confirmation of the facts, here I must say again, we will take strict measures based on laws and regulations.

Q.

At the press conference after the previous Cabinet meeting, you said work was underway to establish facts about the employees lent by insurers to BIGMOTOR.  Who paid their salaries? What were they loaned for?

A.

We have recognized that several major non-life insurers have lent some of their employees to BIGMOTOR. Now we are working to determine facts about a string of issues concerning the company.
As part of the work, we are examining their relationships, including specifics about who was lent by whom for what, to see whether or not there was anything inappropriate in relation to the series of fraudulent practices. I suppose we must work carefully to determine all the facts. The work is still underway. So, I would like to refrain from making any comment about that at the moment.
In any event, if the collecting facts show anything lacking in policyholder protection, the FSA will take strict measures based on laws and regulations.

Q.

Let me ask a question only in general terms. An insurer employee lent by the employer to its agent, who pays his/her salaries, would be expected to work on its behalf. Isn't there a danger that he/she may act against the interests of the insurer by, for instance, turning a blind eye to fraudulent practices the agent engages in, just as BIGMOTOR did this time, to the detriment of the interests of policyholders?

A.

Generally speaking, I suppose, an insurer employee lent by the employer to its agent, who pays his/her salaries, would not be necessarily detrimental to the interests of policyholders.
However, in this particular case, we will fully examine the relationships between BIGMOTOR, as an insurance agent, and major non-life insurers who commissioned the company to act for them, including roles their employees played while on loan, to find whether or not there was anything inappropriate in relation to the series of fraudulent practices.
Let me say again what I have just mentioned; we are now working to find all the facts, and if the collecting facts show anything lacking in policyholder protection, we will take strict action according to laws and regulations.

Q.

You have mentioned an interview with BIGMOTOR. Do you mean that you are going to talk with the president or other executives of the company?

A.

I hear that some executives came from the company for an interview today. For more details, the secretariat personnel would be able to answer your questions later.

Q.

Are the executives going to visit the Kanto Local Finance Bureau for an interview?

A.

Yes.

Q.

I have a favor to ask of you. For questions about BIGMOTOR, you said the FSA staff would be able to answer our questions. It would bother them if we each contact them at the same time. Could they stay for a while after the conference and hold a briefing for us?

A.

Would you please let our Public Relations talk with the press club representative for that?