The fine was said to be the first ever imposed on a company by the GFSC, although this could not be immediately confirmed.
Generali Worldwide is an arm of the Trieste, Italy-based Generali Group, one of the world’s largest insurance companies. It is a separate company from Generali International, and focuses on "group employee benefit solutions", targeting international companies in particular.
The fine was revealed today in a statement on the commission's website, which said the company had failed to comply “with certain reporting requirements relating to its regulatory margin of solvency” and on the adequate definition of an investment strategy”, as set out in the Licenced Insurers’ Corporate Governance Code.
This, it said, had resulted in its “summaries of adherence” to its corporate government principles in 2009 and 2010 being “inaccurate”.
Generali Worldwide had also failed to comply with certain reporting requirements relating to its “relationship risk assessment” process and for falling short in its duties to notify staff of a change in its money laundering reporting officer.
The GFSC said it had taken into account certain mitigating factors in the case, including the fact that since an on-site visit in August 2011 and a subsequent “extensive examination”, Generali Worldwide had taken a “proactive approach to dealing and remediating with” its concerns.
It also noted that no policyholders had suffered a loss as a result of the failures it had identified.
'Dealt with'
In a statement, Generali Worldwide noted that the matters flagged up by the GFSC related to "certain specific and limited administrative issues dating back to a period three to five years ago" which, it noted, even the commission acknowledged had all been "comprehensively addressed and dealt with" by Generali Worldwide some time ago.
"As the commission acknowledges, no policyholder suffered any loss," the statement added. "No policyholder's funds were ever at risk. The company was at all times and remains still substantially and more than healthily capitalised, and has continued to develop and expand its business throughout the period" in question.
