External committee linked sums to 159 current and former staff and 794 customers, and said it found structural failings in sales management, culture, and governance.
The insurer has voluntarily stopped writing new business since February, but the FSA is planning a formal order after employees improperly obtained JPY3.1bn (US$19.7m) from about 500 customers.
The alleged IDR54bn (US$3.04m) investment fraud and payroll-related embezzlement could lead to further losses, weighing on the insurer's capital and profitability.
The sentencing includes a HK$3.7m (US$471,626) restitution order in favour of CCB Asia, reflecting the value of cryptocurrency bribes accepted by the former banker.
They will combine claims intelligence and specialist expertise to identify suspicious claims patterns and curb insurance fraud across health and motor lines.
The regulator plans closer oversight of claims assessment practices, with a particular focus on claims leakage, dispute trends and potential on-site reviews.
