by Nao Sano
Japan’s competition watchdog has begun an investigation into whether the top four non-life insurers colluded to set premiums for their corporate clients, according to a person familiar with the matter, becoming the latest regulator to look into the issue.
The Japan Fair Trade Commission will summon officials from Tokio Marine Holdings Inc., MS&AD Insurance Group Holdings Inc., Sompo Holdings Inc. and MS&AD unit Aioi Nissay Dowa Insurance Co. on Thursday and request their cooperation on the probe, the person said, asking not to be identified because the information is private.
Meanwhile the Financial Services Agency is deepening its own investigation after suspecting a “wide range of cases” of price collusion, Finance Minister Shunichi Suzuki said.
The JFTC is examining insurance policies for railway operator Tokyu Corp. and Sendai International Airport and may look into other cases, the person said. If violations are confirmed, the commission will consider administrative action, the person added.
The allegations first came to light in June, when the FSA ordered the insurers to submit reports on premiums for clients including Tokyu. Authorities sought to determine whether the suspected collusion was an isolated incident or systematic.
The FSA has ordered insurers to conduct additional checks and report on any other irregularities, Suzuki said at a regular news briefing on Tuesday.
“We have received reports from time to time and concluded that there may be a wide range of cases in which inappropriate price adjustments may have been made, and it’s necessary to conduct a more comprehensive and in-depth investigation,” Suzuki said. The FSA will take strict action if any problems are found, he added.
In late July, Nikkei reported that dozens of suspicious cases have emerged during the insurers’ investigations. They are alleged to have colluded in determining premiums for companies including refiner Eneos Corp. and East Japan Railway Co., the newspaper said.
The JFTC declined to comment. A representative for Tokio Marine confirmed that the commission had launched an investigation and said it was cooperating with the authorities. MS&AD and Aioi Nissay Dowa said they were looking into the matter, while Sompo said it will respond appropriately to the probe. Local media reported on the probe earlier.
--With assistance from Erica Yokoyama.
Copyright Bloomberg News
