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Zurich hit with £2.3m fine for data loss

The FSA has fined the UK branch of Zurich Insurance £2.3m for failing to have adequate systems and controls in place to prevent the loss of customers’ confidential information.

The fine is the highest levied to date on a single firm for data security failings and follows the loss of 46,000 customers’ personal details, including information on bank accounts, credit cards, insured assets and security arrangements.

The FSA says the loss could have led to serious financial detriment for customers and even exposed them to the risk of burglary.

Zurich UK outsourced the processing of some of its general insurance customer data to Zurich Insurance Company South Africa Limited.

In August 2008, Zurich SA lost an unencrypted back-up tape during transfer to a data storage centre but Zurich UK did not learn of the incident until a year later.

By agreeing to settle at an early stage, Zurich received a 30 per cent discount on what would have been a fine of £3.25m.

FSA director of enforcement and financial crime Margaret Cole says: “Zurich UK let its customers down badly.”

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In Focus — May 2015: private medical insurance market in Germany

Welcome to the latest edition of In Focus. In this issue, Jelf examines the private medical insurance market for employers with expatriate workforces in Germany. This includes the common challenges faced in sourcing appropriate coverage, along with a selection of available solutions. This will be of particular interest to HR/reward decision makers with employees based in Germany. It will assess the cultural norms, risks and backdrop that are relevant to organisations with expatriate staff in this location.

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