PRA has fined MS Amlin Underwriting Limited nearly £10m for failings in its governance, controls and risk management. The failings lasted for over 5 years and related to the governance and oversight of underwriting, underwriting controls, management information, data quality and risk management strategies add systems. Among PRA’s findings was that the firm:
- had not embedded a strong or effective risk culture;
- did not clearly delineate between 1st and 2nd lines of defence;
- had no effective system of governance underpinned by an adequate and transparent organisational structure;
- did not ensure proper MI was available; and
- did not have effective underwriting controls.
PRA found the firm breached Fundamental Rule 5 and 6.
The firm benefitted from a 30% reduction for early settlement.