TOKIO MARINE TO TRANSFER “THIRD-SECTOR” BUSINESS TO LIFE OPS

Japan-based insurer Tokio Marine & Nichido Fire is to stop selling so-called “third sector” business and will transfer the operations to its life assurance division Tokio Marine & Nichido Life, reported Nihon Keizai Shimbun yesterday. The company is currently undergoing an internal review of its processes and it has reportedly discovered 800 valid medical and other insurance claims that have not been paid. Its life unit has more underwriting medical staff and relevant resources than the non-life unit. Both units had previously sold third-sector policies such as cancer insurance and whole-life medical cover. The non-life operation, a subsidiary of Millea Holdings, will stop selling the third-sector policies in April 2007, the report claimed, noting that other Japanese insurers could follow suit. The non-life operation will continue to offer short-term medical products that are renewed annually