The Financial Supervisory Agency has ordered Taisho Life Insurance Co. to recapitalize and improve its management after an agency inspection found the small life insurer to be financially weak, industry sources said Saturday.
Taisho Life, based in Tokyo, is the first life insurance company to which the FSA has issued an order for prompt corrective action under the Insurance Business Law.
The FSA found the company's solvency margin, the gauge of an insurer's capability to pay insurance claims, has dropped below 200 percent. An insurer with a solvency margin of less than 200 percent is regarded as financially weak and is issued by the agency a business improvement order.