The Financial Services Agency ordered Nichido Fire & Marine Insurance Co. on Thursday to suspend some of its operations after it was found to have sold an unauthorized type of automobile insurance.
The FSA has ordered all Nichido Fire branches to suspend auto insurance sales between May 8 and May 10, and will also postpone certification of the firm's new products for about a month starting May 8.
The auto insurance Nichido Fire was selling had been modified from the policies the FSA certified. The insurer also failed to notify the FSA that it altered the contents of the product, the agency said.
The financial regulator ordered Nichido Fire to strengthen employee education to ensure the company adheres to the law.
On April 2, Nichido Fire integrated operations with Tokio Marine & Fire Insurance Co. under Millea Holdings Inc., the centerpiece of the Millea Insurance group, which comprises the two insurers plus Kyoei Mutual Fire & Marine Insurance Co. and Asahi Mutual Life Insurance Co.