Japan's regulator punishes non-life insurers
TOKYO, March 14 (Reuters) - Japan's financial regulator on Wednesday punished 10 non-life insurance firms and slapped several with orders to temporarily halt some operations, after they failed to pay medical insurance claims worth nearly $9.5 million.
Two units of U.S. insurance firm American International Group Inc. (AIG.N) were among those reprimanded.
Japanese insurers Tokio Marine & Nichido Fire Insurance Co. Ltd., a unit of Millea Holdings Inc. (8766.T), and Nipponkoa Insurance Co. Ltd. (8754.T) are prohibited from signing up new customers for certain products during the three months to July 1, the Financial Services Agency said in a statement.
They are also prevented from applying for the approval of some new products during the three months to June 14, the FSA said.
Four other insurers will be banned from applying for government approval of some new products during the month to April 14, the FSA said.
Among those are the listed firms Aioi Insurance Co. Ltd. (8761.T), Fuji Fire & Marine Insurance Co. Ltd. (8763.T) and another Millea unit, Nisshin Fire & Marine Insurance Co. Ltd.
The FSA ordered four other companies to improve their operations, including Nissay Dowa General Insurance Co. Ltd. (8759.T) and two units of U.S. firm AIG, American Home Assurance Co. and AIU Insurance Co.
The 10 insurers failed to pay a total of 1.1 billion yen in nearly 3,600 cases during the five years to 2006, the FSA said.
Several of the companies issued statements of apology.
Shares of insurance companies fell ahead of the announcement on Wednesday. The TOPIX's insurance sector sub-index .IINSU.T fell 3.9 percent, compared with a 2.9 percent drop in the index.
