Japanese insurer suspended over claims
Japan’s Financial Services Agency has ordered the country’s second-largest property and casualty insurer to stop selling medical insurance because it failed to pay claims.
The agency says Mitsui Sumitomo Insurance failed to pay claims in more than 40,000 cases during the past three years. It has been suspended from selling automotive and fire insurance for two weeks and ordered to stop developing insurance products for the next year.
Mitsui Sumitomo is among a group of insurers under investigation by the regulator. Another is Sompo Japan Insurance, which the agency says failed to make ¥909 million ($10.7 million) in payments to claimants.
Mitsui Sumitomo was also banned from opening overseas offices and ventures for three months from June 22 as a penalty for lack of internal controls over its unit in the UK.