April saw an unusually large number of insurance-related events, and Hartford Life losing $24 million in refunds after an estimation error
With a few exceptions, the top five loss events over the past two years have been relatively small. April 2012’s data continued this trend, but it also contained an unusually large number of ‘Insurance (non-BIS)’ events, ranging from failures to pay client claims, to shareholder lawsuits, to billing errors.
Although ‘Clients, products and business practices’ losses are the most common in the top five lists each month, large product flaw losses are rare. However, this month, Hartford Life Insurance had to pay $24 million in deductions and refunds after an error in its payout estimates resulted in the company retaining too much of its premiums.
More on Operational Risk
Operational risk managers highlight repeat failures at firms
Heavy regulatory costs and fragile systems will be problems in 2015
Poor IT risk management threatened UK financial system
Slow-moving investigations mean misdeeds will linger on
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.