NUMBER OF UNPAID CLAIMS RISE IN JAPAN INVESTIGATION

Japan’s Financial Services Authority (FSA) is considering fines and suspension orders for six non-life insurers found to have under-estimated the number of unpaid claims to policyholders during a supervisory review last year. Some 140,000 cases across 26 firms were reported to the regulator in November but a second count this year has put the figure at nearer 260,000, equivalent to 16bn yen in claims and double the amount forecast last year. Market leader Tokio Marine & Nichido Fire revealed a further 45,000 unpaid claims on top of the 18,000 reported last year while Aioi Insurance reported the largest number of unpaid claims at 68,000 although a review is ongoing. The FSA ordered suspension orders on Sompo Japan Insurance and Mitsui Sumitomo Insurance last year after they were found to have under-reported the number of unpaid claims and the precedent could result in further suspensions following the latest disclosure. The other insurers involved are Nipponkoa Insurance and Nissay Dowa General Insurance.