The U.K. Financial Services Authority (FSA) has fined the U.K. branch of Zurich Insurance PLC, a unit of Zurich Financial Services AG, a record £2.28 million ($3.54 million) for the loss of customers' personal details in 2008. The FSA reports that Zurich U.K. lost a back-up tape containing customers' sensitive information during a transfer to a data-storage center in South Africa.

Although there has been no evidence that the data was put to criminal use, the FSA said the insurer failed to ensure it had effective controls during the transfer, then failed to report it. While the fine set a record, Zurich U.K. received a 30 percent discount for settling early with the regulator.