INSURERS FACE SUSPENSIONS FROM FSA IN JAPAN

The Japanese Financial Services Agency (FSA) is on the verge of issuing partial business suspension orders on a number of major non-life insurers because of non-payments and mispayments in third-sector policies, according to Nikkei . Tokio Marine & Nichido Fire and Nipponkoa are likely to be suspended from selling or developing third sector products for several months, while Aioi and others are expected to be given suspension orders lasting a month, the report claimed. However, Mitsui Sumitomo and Sompo, both of which suffered severe penalties last year, were thought likely to escape punishment this time round. Some 4,300 cases of mispayment have been uncovered in the five years since non-life insurers have been allowed to sell third-sector medical and illness policies.