Japan Orders 4 Insurers To Stop Price Collusion

Japan's financial watchdog has ordered four major property insurers to enhance their business operations after discovering collusion to set inflated insurance premiums for corporate customers and government agencies, as reported by Kyodo News.

Japanese Finance Minister Shunichi Suzuki criticized the lack of compliance in the industry and condemned the companies' conduct at a press conference. I Photo: Benedikt von Loebell World Economic Forum

This marks the first time in 16 years that Japan's major insurers have been subject to collective administrative punishment from the country's regulator.

The last instance occurred in 2007 when a group of firms was penalized for not properly paying out insurance claims to customers.

The four companies implicated are Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Inc., Mitsui Sumitomo Insurance Co., and Aioi Nissay Dowa Insurance Co., according to Mainichi Japan.

Japanese Finance Minister Shunichi Suzuki criticized the lack of compliance in the industry and condemned the companies' conduct at a press conference, stating, "It is extremely malicious."

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