MS Amlin Underwriting fined $11M over risk, governance lapses
By 
Neil Hodge2022-10-20T19:07:00
The U.K.’s Prudential Regulation Authority (PRA) fined specialty insurer MS Amlin Underwriting (MSAUL) nearly 9.7 million pounds (U.S. $10.9 million) for risk management and governance failings over a five-year period.
The Bank of England’s regulatory arm found compliance failures regarding the firm’s governance and oversight of underwriting, underwriting controls, management information, data quality, and risk management strategies and systems between September 2014 and December 2019.
In its final decision notice published Thursday, the PRA said the fragmented nature of MSAUL—it was divided into three strategic business units—meant board oversight and input into the business plan and strategy were ineffective. The regulator said the governance structure was so bad, the nature and scale of underwriting losses worth £545 million (U.S. $611 million) in 2017 “came as a surprise to underwriting management and the board.”
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