Nov 27
Insurance Fraud for the Insurer
In the United States, malfeasance by an insurance company usually seems to result in restitution to victims, payment of a fine, and – as part of the settlement – no admission from the insurance firm of any wrongdoing.
In Japan, tradition takes them in a little different direction. Last week, Nippon Life Insurance Co. said Friday it has imposed penalties on 16 of its executives, including a 30 percent cut in President Kunie Okamoto’s pay for six months, over nonpayment of insurance claims.
The insurance company submitted a business improvement plan to the Financial Services Agency and pledged to work harder to restore public trust. Last month, Japan’s financial watchdog ordered Nippon Life to correct its business practices as the company admitted falsifying documents to avoid insurance claim payments worth 200 million yen for 29 cases.
More after teh jump…
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September 25th, 2007 at 2:29 am
This is certainly one way that the Japanese cultural emphasis on honor leads to something worthwhile! I agree that it may not make the insurance claims get paid a whole lot faster in the immediate future, but it does hold executives accountable for their actions… which is not always the case in other countries. Like, say, this one.
Jerry
http://www.leads4insurance.com
November 25th, 2007 at 12:40 pm
I certainly wish that other western insurers took the same level of measures that Nippon Life did. The insurance companies of late have become increasingly larger and have steadily reduced levels of pay-out. Executives who can help the insurance company keep as much of its finances are given big pay bonusses and are rarely if ever put under the spot light for moral conducts.
http://www.insurancerelease.com