Leaders of three major Japanese non-life insurers apologized at their respective general shareholders’ meetings on Monday for the scandals that have rocked the sector.
The three insurers – Sompo Holdings, Tokio Marine Holdings and MS&AD Insurance Group Holdings – have been hit by incidents including a fraudulent insurance claims scandal involving second-hand car dealer Bigmotor and conspiracy to manipulate premiums for corporate customers.
At the general meeting of Sompo Holdings, where the previous leadership resigned at the end of March to take responsibility for the Bigmotor scandal, shareholders voted on the appointment of thirteen board members, including president Mikio Okumura.
“External board members are also responsible for scandals,” says a shareholder in his seventies. “I want to stay on this topic.”
President Shinichiro Funabiki of Mitsui Sumitomo Insurance, a unit of MS&AD Insurance, apologized at the parents’ general meeting for the premium payment scandal and promised to improve business operations. He also stated that he is committed to preventing a similar incident.
But one shareholder said: “The anti-recurrence measure is in name only, and I don’t believe it will solve the problem.”
Critics say so-called strategic equity holdings, including cross-holdings, which companies hold in customers to maintain good relationships, have helped create an environment that has led to fraudulent actions.
“In six years we will eliminate our strategic shareholdings,” Funabiki told shareholders.
