Sompo Japan’s Chief steps down amdist Bigmotor misconduct

The date for his last day is yet to be determined.

Sompo Japan Insurance announced that its President, Giichi Shirakawa, will step down due to the company's inadequate handling of fraudulent automobile insurance claims involving used car dealer Bigmotor Co., the Jiji Press reported. 

Shirakawa admitted that it was "thoughtless" for Sompo Japan to resume business with Bigmotor despite being aware of the potential fraud. 

READ MORE: Sompo Japan Chief to Resign over Bigmotor Scandal

Sompo Japan Insurance’s close association with Bigmotor, a used car dealership and repair chain, has drawn significant scrutiny after the dealership was caught overcharging for repairs by intentionally damaging cars and making fraudulent insurance claims.

The insurer, which had been lending many of its employees to Bigmotor, is suspected of turning a blind eye to the dealership's misconduct in order to preserve their business relationship.

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The Financial Services Agency is actively investigating the matter and is planning an on-site inspection of the insurer later this month.

The timing of his departure and the appointment of his successor are yet to be determined.