The president of Sompo Japan Insurance Inc. resigned Friday to take responsibility for the firm's misconduct that resulted in a business suspension order, while the insurer announced it mistakenly collected 6.5 million yen in premiums due to a clerical error.
Hiroshi Hirano, 63, will be replaced by Sompo Japan Director and Managing Executive Officer Masatoshi Sato, 57, the company said.
The insurer said its board had approved a motion to strip Hirano of all other titles and duties in the company, and had scrapped its plan to make him chairman on June 28.
Three vice presidents have also stepped down and the company has revoked its decision to appoint them as presidents of affiliates, it said.
Hirano and the three vice presidents, who also had the right to represent the company in business with other firms, will be barred from any senior-level posts in the Sompo Japan group.
At a news conference Friday, Sato said Hirano and other executives have resigned to take responsibility for the firm's problems.
The Financial Services Agency on May 25 gave Sompo Japan several suspensions to different operations for up to a maximum of three months.
The order was issued as a disciplinary step against a series of violations, including thousands of refusals to pay out on legitimate insurance claims and for having its employees get contracts signed by bogus customers to raise their sales performance figures.
