According to weekend reports, Norwich Union is set to lose £10m from "poor service levels" at its Indian operations, and could receive a hefty fine from the FSA for "breaching obligations".
A Norwich Union report on call centre standards was leaked to the press, sparking criticism over the firm's management of customer service levels and data security.
Norwich Union has reacted strongly to the claims and dismissed reports it is being investigated by the FSA, over breaking regulations, as "nonsense".
A spokesman for Norwich Union said the India report was "one of hundreds that are produced every year. The Financial Mail has chosen to focus on operations in India, if this report was about Manchester or Liverpool it would have been ignored.
"We have had no problems with fraud at our Indian call centres and we are not anticipating any issues with the FSA."
The criticism of Norwich Union coincides with a report that was recently issued by the FSA into performance levels at insurance call centres.
Norwich Union recently transferred around 150 jobs from its Indian operations back to the UK.
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