Japan’s major property insurers are suspected of colluding over insurance premiums for corporate customers such as oil refiners, steel companies, and public transportation operators, according to sources close to the matter.
The Financial Services Agency is expected to order Japan’s four major insurers, including Tokio Marine & Nichido Fire Insurance, to submit records of contracts where they allegedly arranged premium levels to avoid competition.
The agency suspects that this alleged collusion took place when the insurers jointly underwrote coverage for large infrastructure companies like ENEOS Holdings, East Japan Railway, and Narita International Airport.
The other three insurers involved are Sompo Japan Insurance, Mitsui Sumitomo Insurance, and Aioi Nissay Dowa Insurance.
This allegation comes on top of a policy price-fixing case involving joint coverage for railway company Tokyu by the same four insurers.
In June, the insurers admitted to collusion in Tokyu’s contract and began investigating whether there were other anti-competitive practices in selling other policies.
Dozens of suspected price-fixing cases at the insurers have emerged after employees were asked to report any suspected antitrust activities within their companies following the Tokyu incident.
Before any potential investigations or penalties from the Japan Fair Trade Commission, insurance companies have conducted independent probes into suspicious deals and aim to submit any evidence of collusion to authorities for leniency.
“There are suspicious contracts with companies in a wide variety of industries, in addition to railway firms, oil refiners, and steel companies,” one source said.
Insurers typically provide joint coverage for large companies to mitigate potential large compensation demands.