The Financial Services Agency will conduct on-site inspections at about 10 agencies selling various insurance companies' products amid concerns that some agencies are leading customers to buy excessive coverage to earn higher commissions, sources said Thursday.
The financial watchdog may conduct the inspections — the first of their kind targeting insurance agencies — as soon as January, the sources said.
Agencies expected to be inspected include Hoken No Madoguchi Group, Mitsubachihoken Group and Hokenminaoshihonpo.
The FSA believes it is necessary to check their operations given the recent industry growth, and after a revised law took effect in May requiring that insurance sales agents provide appropriate information to customers.
This fall the FSA sent a questionnaire to around 30 insurance agencies to check their commission fees and other matters, and it has already started collecting detailed information from some agencies.