Expert Blog

Zurich Insurance fined £2.275m by FSA for Loss of Data

The Financial Services Authority (FSA)have fined insurance company, Zurich, following the loss of backup data tapes which contained 46,000 customers personal details.

The loss of data which included policyholder’s bank account and credit account information, was reported as absent in August 2008 during a routine data transfer. Due to the lack of correct reporting lines, the critical error went undiscovered for up to one year.

Zurich faces the largest data security fine imposed on a single firm to date. The FSA have accused Zurich of failing to take correct care of their customer’s data and taking inadequate measures to manage and control the risks of data security. Issues highlighted following the fine included insufficient data protection in regards to financial crime which could potentially subject Zurich policy holders to theft.

Zurich immediately agreed to a settlement, which secured the insurance company a 30% reduction from the original fine of £3.25 million.

Savenet Solutions prides itself on preventing disasters such as these. Savenet Solutions has provided Trinity Fund Administration with a comprehensive Disaster Recovery solution, who are required by regulation to store data for up to five years. Failure to comply with this regulation can lead to substantial fine and ultimately loss of business. Since working with Savenet Solutions Trinity Fund Administration has received the industry standard accreditation, SAS 70 and full compliance with the requirements of the financial regulator.