Monday, December 17, 2007

Record fine of over $2.5M for UK insurer

The FSA (Financial Services Authority) in the UK has fined Norwich Union a record $2.5M (or 1.26M GBP) for incompetence. Seems like criminals pretended to be customers and cashed in on policies worth GBP 3.3M.

$2.5M - thats a large sum for a fine. The previous high was Nationwide Building Society for GBP 980K, earlier this year. Seems like the regulators are getting tough on companies who are incompetent. And this seems to showcase a trend in increasing levels of fines.

No comments: