Sompo Holdings' Kengo Sakurada is planning to step down as CEO at the end of March, over automobile insurance fraud at used-car dealer Bigmotor, informed sources said Tuesday.
The Financial Services Agency is expected to issue business improvement orders to the holding company and subsidiary Sompo Japan Insurance as soon as Thursday regarding their responses to wrongdoing by Bigmotor. The FSA ended its on-site inspections of Sompo Holdings and Sompo Japan on Monday.
The orders will likely urge the two companies to clarify their management responsibility over the matter. The parent company will consider whether Sakurada, 67, should also quit as its chairman, based on the upcoming FSA actions, the sources said.