Progress on the Business Improvement Plan
Sompo Holdings,Inc.; 損害保険ジャパン株式会社
Corporate culture, management control systems and structural issues in the non-life insurance industry. Specifically, a corporate culture that prioritizes the company's own profits over customer protection and compliance; inadequate risk awareness among management and internal control issues; dysfunction in the compliance and risk management functions; excessive support for the core business and secondment of employees to agencies; distortions in the competitive environment resulting from strategic shareholdings; and risks arising from conflicts of interest at agencies engaged in multiple businesses, among other issues.
Related procedures
Report on progress under the Business Improvement Plan based on the business improvement orders
Financial Services Agency
Company response
Rigorous audits by third-party organizations; a Quality Management Committee including outside experts; and interviews with frontline personnel conducted by external organizations
Establishment of a Quality Management Department and appointment of an executive officer responsible for quality management / establishment of committees for individual issues / strengthening of the functions of executive officers responsible for the second and third lines of defense / overhaul of the compliance program / definition and dissemination of the mission of employees belonging to the insurance claims services division / ensuring the independence of insurance claims payment operations / development of systems to comply with the Antimonopoly Act / establishment of a management system for seconded employees (abolition of the former secondment system) / development of systems based on the ideal state of corporate insurance / review of rules and other regulations concerning standards for measures against agencies / training for all employees on conflict-of-interest risks / establishment of a framework for embedding customer trust and quality standards / implementation of multilayered monitoring / enhancement of the functions of the specialized department handling fraudulent claims, rapid sharing of information and identification of signs of fraud
Verification and initiatives concerning the quality-focused framework, compliance, the independence of insurance claims payment operations, monitoring and changes in employee conduct will continue until the improvement initiatives are fully embedded as part of the corporate culture.
| Item | Details |
|---|---|
| Event name | Progress on the Business Improvement Plan |
| Date of occurrence | As of the end of May 2026 |
| Date recognized / date notice received | 15 June 2026 (the date on which the progress of the Business Improvement Plan and other matters were reported to the Financial Services Agency) |
| Subject Entity | Sompo Holdings,Inc.; 損害保険ジャパン株式会社 |
| Cause | Corporate culture, management control systems and structural issues in the non-life insurance industry. Specifically, a corporate culture that prioritizes the company's own profits over customer protection and compliance; inadequate risk awareness among management and internal control issues; dysfunction in the compliance and risk management functions; excessive support for the core business and secondment of employees to agencies; distortions in the competitive environment resulting from strategic shareholdings; and risks arising from conflicts of interest at agencies engaged in multiple businesses, among other issues. |
| Type of litigation or proceeding | Report on progress under the Business Improvement Plan based on the business improvement orders |
| Court or authority | Financial Services Agency |
| Date of filing / date of action | 25 January 2024 (business improvement order concerning the response to fraudulent automobile insurance claims and other matters); 26 December 2023 (business improvement order concerning the response to premium coordination practices and other matters); 24 March 2025 (business improvement order concerning the inappropriate management of insurance contract information and other matters) |
| Investigation structure | Rigorous audits by third-party organizations; a Quality Management Committee including outside experts; and interviews with frontline personnel conducted by external organizations |
| Measures to prevent recurrence | Establishment of a Quality Management Department and appointment of an executive officer responsible for quality management / establishment of committees for individual issues / strengthening of the functions of executive officers responsible for the second and third lines of defense / overhaul of the compliance program / definition and dissemination of the mission of employees belonging to the insurance claims services division / ensuring the independence of insurance claims payment operations / development of systems to comply with the Antimonopoly Act / establishment of a management system for seconded employees (abolition of the former secondment system) / development of systems based on the ideal state of corporate insurance / review of rules and other regulations concerning standards for measures against agencies / training for all employees on conflict-of-interest risks / establishment of a framework for embedding customer trust and quality standards / implementation of multilayered monitoring / enhancement of the functions of the specialized department handling fraudulent claims, rapid sharing of information and identification of signs of fraud |
| Outlook | Verification and initiatives concerning the quality-focused framework, compliance, the independence of insurance claims payment operations, monitoring and changes in employee conduct will continue until the improvement initiatives are fully embedded as part of the corporate culture. |
Items this document does not state (14)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Because substantial progress was made in connection with the review of each initiative at the end of the fiscal year and other related activities.