FSA has fined Zurich Insurance £2,275,000 for failure to have in place adequate systems and controls to prevent it losing confidential information on 46,000 customers. The details it lost included identity details, bank account and credit card information and information on insured assets and security arrangements. The loss happened when Zurich Insurance Company South Africa Limited, to whom Zurich UK outsourced general insurance customer data processing, lost an unencrypted back-up tape. Zurich UK did not find out about this for a year because it did not have proper reporting procedures in place. This is the largest fine FSA has imposed on a single firm for data security failings. Zurich Insurance benefited from a 30% discount for early settlement.