The Financial Services Authority has fined a British subsidiary of New York-based American International Group $1 million for failing to operate effective controls in its call centers. The regulator accompanied the fine with a warning to all insurance companies, telling them to make sure they keep on top of call center risks.
The FSA said that London-based AIG subsidiary UNAT had a lack of effective control and oversight over its call center operations. The company used nine call centers to sell general insurance products that AIG underwrote. The regulator reduced its fine from $1.2 million because the company cooperated and settled early.
