Sompo Japan Insurance Inc. President Giichi Shirakawa plans to resign to take responsibility over a high-profile insurance fraud involving used car dealer Bigmotor Co., sources familiar with the matter said Friday.
The major Japanese insurer's close relationship with Bigmotor has come under scrutiny after the dealership was found to have charged excessive repair fees by intentionally damaging cars and to have made fraudulent insurance claims.
Sompo Japan, which has been sending a large number of its employees on loan to Bigmotor, is suspected of overlooking the wrongdoing by the car dealer to avoid damaging their business ties.
Sompo Japan is set to hold a press conference from 3:30 p.m. Friday.
Japan's Financial Services Agency is looking into the matter and is slated to conduct an on-site inspection at the insurer later this month.
