Insurer Sompo Japan failed to report systemic fraud at Bigmotor

Accounts of store manager's instructions were concealed from financial watchdog

20231010N bigmotor raided

Investigators about to enter a Bigmotor dealership in Tama, Tokyo, on Sept. 19. (Photo by Yuki Nakao)

TAKANOBU AIMATSU, Nikkei staff writer

TOKYO -- Sompo Japan Insurance hid the full scope of major used-car dealer Bigmotor's alleged fraudulent insurance claims by failing to report instances of potential systemic cheating to the authorities, according to an outside committee's report.

The Japanese nonlife insurer "cannot avoid criticism that it concealed the truth," said the investigation's scathing interim report released Tuesday by parent Sompo Holdings.

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