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Zurich South Africa said on Thursday it has lost a tape containing data with customer information.
"To date, Zurich South Africa has seen no evidence to suggest that data has been misused or compromised," the insurance company, with its headquarters in Johannesburg, said in a statement.
However it recommended that customers, brokers and other parties should advise their banks of the potential risks.
The back-up tape was lost during a routine transfer within South Africa to a data storage centre in August 2008.
Since then a KPMG investigation into the loss has been conducted. It is expected to be completed by the end of November.
"Zurich South Africa's investigation into the loss of the back-up tape has revealed certain deficiencies in the management of data tape security procedures in South Africa."
Company chief executive officer Guy Munnoch apologised to those affected.
"We are implementing all the necessary steps to strengthen our internal processes to ensure that incidents of this nature do not happen again in the future."
Parties affected include those in South Africa and Botswana.
The company said security for the transportation of data tapes had been improved.
"Customers are encouraged to contact Zurich South Africa if they believe that they may have suffered a loss as a result of this incident or if they have any concerns."
Affected customers can contact the company on 0860-112-235.
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