New perceptions: how insurers must raise their game in credit risk management

New perceptions

Senecio by Paul Klee

With the eurozone teetering on the brink of a sovereign default and credit agency ratings now taken with large pinches of salt, credit risk management has come in for a fundamental review. But, many of those most closely involved with managing credit risk say the issue is less that the risk itself has changed, and more that the perception of it has become more acute. Traditionally, insurers have invested significantly in portfolios of government and corporate bonds. Managing the credit risk o