The Prudential Regulation Authority (PRA ) said MS Amlin failed in areas of governance and oversight of underwriting, underwriting controls, management information, data quality, and risk management strategies and systems.
The failings took place between 1 September 2014 and 31 December 2019, the regulator said.
Specifically, the investigation found that the re/insurer failed to embed effective risk culture within the business and did not place appropriate risk mitigation strategies.
As per the regulator, there was a lack of clarity on responsibilities between the first and second lines of defence and an effective system of governance.
MS Amlin also failed to ensure that management information was enough, consistently available and appropriate to support decisions.
Furthermore, the firm did not have consistent data quality controls, an adequate data repository system and sufficient controls over underwriting.
Bank of England Deputy Governor Sam Woods said: “It is vital that firms have in place appropriate governance, oversight and risk management controls, and that firms remediate issues identified by the PRA in a full and timely manner.
“The penalty reflects the seriousness of MSAUL’s failure to meet the expected standards in this case, and should deter similar conduct by other firms.”
MS Amlin has agreed to resolve the issue with PRA and therefore is qualified for a 30% reduction in the fine, which otherwise would have been £13.85m.
“The new management team, established in 2020, has completed a comprehensive programme of structural and strategic changes which has dealt with these historical matters, and supported a return to profitable growth,” MS Amlin was quoted by Reuters as saying.