Approximately 130 executives from four leading Japanese property and casualty (P&C) insurance companies are set to experience pay cuts of up to 50%. This decision stems from their involvement in price-fixing schemes within contracts with corporate clients and government entities.
The affected insurers—Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance, Mitsui Sumitomo Insurance, and Aioi Nissay Dowa Insurance—have submitted business improvement plans to the Financial Services Agency (FSA) following its directive to address operational deficiencies related to price manipulation.
Among the notable measures, Tokio Marine & Nichido Fire Insurance President Shinichi Hirose will endure a 50% reduction in his monthly salary for three months. Additionally, Chairman Satoru Komiya will face a 30% reduction in his monthly pay over the same period.
Similarly, Sompo Holdings has announced plans to implement salary cuts of up to 50% for nearly 50 executives across its group companies, including Chairman and Group CEO Kengo Sakurada.
Both Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance have committed to imposing salary reductions of up to 50% for their respective presidents and several other high-ranking executives.
In addition to these measures, the four insurers have pledged to divest all cross-shareholdings with client firms, responding to criticisms from financial regulators regarding this practice. This move signifies a concerted effort by the companies to rectify past shortcomings and uphold integrity within the industry.
As these insurers take proactive steps to address regulatory concerns and uphold ethical standards, they demonstrate a commitment to fostering transparency, accountability, and fair business practices in the Japanese P&C insurance sector.
