Financial Services Agency orders Japanese insurers to report policyholder info leaks

Financial Services Agency orders Japanese insurers to report policyholder info leaks | Insurance Business Asia

Insurance News

Financial Services Agency orders Japanese insurers to report policyholder info leaks

Major insurer confirms around 2,700 sets of policyholder data leaked

Insurance News

By
Roxanne Libatique

Sompo Japan Insurance Inc revealed on Tuesday that it has been directed by the Financial Services Agency (FSA) to provide reports on incidents where employees on loan to insurance agencies improperly disclosed policyholder information to the nonlife insurer.

According to Nippon’s report, this directive from the FSA is based on the insurance business law.

Additionally, Mitsui Sumitomo Insurance Co and Aioi Nissay Dowa Insurance Co were found to have been issued comparable directives.

Sompo Japan stated that its employees seconded to nine insurance agencies leaked information regarding clients from other insurers to Sompo Japan. Specifically, approximately 2,700 sets of policyholder data were leaked from Tokyo-based Total Insurance Service Ltd to Sompo Japan.

Moreover, data on 1,518 fire insurance policyholders with loans for investment condominiums were leaked from Yokohama-based insurance agency Hoei Co.

The entities under Tokio Marine potentially affected by this data breach include:

Tokio Marine & Nichido Fire Insurance Co
Tokio Marine & Nichido Life Insurance Co
E.design Insurance Co

The compromised information comprises names, addresses, and insurance policy numbers. To date, there have been no reported instances of unauthorized use of this data.

This planned hike is in response to higher payouts for natural disasters and the increasing costs associated with home repairs.

The other insurers expected to implement similar rate increases are:

Sompo Japan
Mitsui Sumitomo Insurance Co
Aioi Nissay Dowa Insurance Co

Last year, the FSA approved a proposal to raise reference rates for fire insurance by an average of 13%, which insurers utilise to determine premiums.