FCA fines insurer £5+ million for outsourcing failures
The regulator has fined a large UK insurer for failures in its oversight of claims and complaints handling processes, which were outsourced to a third pary administrator. The Final Notice highlighted a number of weaknesses, including:
- failure to "undertake an adequate risk assessment, review or adequately plan for ongoing monitoring"
- "lack of oversight from the Board and senior management on the development of conduct risk controls"
- "delegated compliance oversight to a function that lacked the resources and expertise to understand the nature of the risks and what would be needed to mitigate them"
- "inadequate processes being in place for ensuring that complaints were dealt with fairly, impartially and consistently".
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Handling Complaints under DISP (new date to be confirmed).