Japan orders major insurers to reform practices

Japan’s Finance Minister Shunichi Suzuki announced orders for four leading non-life insurers to enhance business practices due to anti-competitive activities aimed at maintaining high premium levels. The companies affected are Aioi Nissay Dowa Insurance, Sompo Japan Insurance, Tokio Marine & Nichido, and Mitsui Sumitomo Insurance. These firms had reportedly been investigated for potential prior consultations among themselves while drafting client contracts. Responding to the government’s order, all four insurers have committed to regaining public trust. Suzuki emphasised the need for these companies to identify management responsibilities and overhaul their management controls, highlighting their actions as contrary to the principles of Japan’s antitrust law. The minister urged each company to take serious steps to ensure such violations do not recur.