The Financial Services Agency ordered 26 nonlife insurers Friday to make improvements after failing to honor more than 8 billion yen in legitimate insurance claims in a scandal that has deepened worries about the faltering industry.
It was also revealed that the nonlife insurance industry engaged in a systematic nonpayment of extra coverage mainly for auto insurance.
The companies punished by the financial watchdog include major insurers Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Inc., Mitsui Sumitomo Insurance Co. and Aioi Insurance Co. They also include five foreign insurers here, including American Home Assurance Co. and AIU Insurance Co.