Financial watchdog searches Bigmotor, Sompo Japan over fraud case

Japan’s financial watchdog on Tuesday searched offices of major used car dealer network Bigmotor Co. and casualty insurer Sompo Japan Insurance Inc. as part of a high-profile insurance fraud investigation.

The Financial Services Agency aims to scrutinize ties between the companies after Bigmotor was found to have charged excessive repair fees by intentionally damaging cars and making fraudulent insurance claims.

Sompo Japan, which sold a large portion of its auto insurance through Bigmotor, is accused of knowingly overlooking the fraudulent practices to avoid damaging the relationship.

Bigmoto...