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

(Excerpt)

(Tuesday, August 29, 2023, 11:01 am to 11:17 am)
 

[Opening remarks:]

Let me start with a statement on matters concerning the Financial Services Agency (FSA).
I would like to introduce to you The JFSA Strategic Priorities, which presents policies and priorities the FSA should address the year ahead.
It is an annual publication, and the strategic priorities for business year 2023 will be officially announced this afternoon. The new strategic priorities have four key points.
First, regarding support for business operators, the FSA will hold focused interviews with them to identify challenges they face and encourage financial institutions to provide them with support for business improvement or business turnaround in a manner relevant to their realities.
Second, the FSA will prepare a specific policy plan for promoting  Japan as a leading asset management center, as stated in the Basic Policy on Economic and Fiscal Management and Reform and other programs this year. We will also steadily carry out the Doubling Asset-based Income Plan, formulated at the end of last year.
Third, carefully observing situations both in Japan and abroad, we will perform in-depth monitoring necessary to maintain the soundness of financial institutions and keep them fully compliant with laws and regulations.
Fourth, regarding an FSA-related bill carried over from the last ordinary Diet session to the next, we hope the legislators will proceed with deliberations as quickly as possible. Meanwhile, for carrying it into effect swiftly once it passes the Diet, we will also make preparations in a proactive manner for establishing an Organization for the Promotion of Financial and Economic Education and placing it in full service as well as working to review the manner of quarterly disclosure.
While responding flexibly to changing economic conditions, the FSA will constantly strive to address these priorities.
For more detail, staff in charge will give a briefing this afternoon.

[Questions and answers:]

Q.

Let me ask a question of you as Minister of State for Financial Services about BIGMOTOR and non-life insurers. Some media have reported that Sompo Japan was informed of possible fraudulent practices BIGMOTOR had engaged in when the insured decided to resume business with the repair company, and that President Shirakawa and other executives of the company personally suggested that business be resumed with them. What action will the FSA take to address that?

A.

I recognize there was the media report you have mentioned.
On July 31, the FSA ordered Sompo Japan to submit a report. In terms of what you have pointed out, their business resumption with BIGMOTOR, we require the insurer to inform us why they alone decided to resume transactions, including whether and how the management was involved in the decision.
At the moment, the FSA is working based on the order we have issued according to laws and regulations to find all the facts about the arrangements the insurer has in place to detect and prevent fraudulent claims. I believe what matters first is to ascertain and analyze the facts of the case, including how and why it occurred.
We will carefully analyze the report, and if the collecting facts show finds anything detrimental to the protection of policyholders, the FSA will take strict measures based on laws and regulations.