New risk-based regulation will cost the UK insurance industry between £10 billion and £15 billion, with tangible benefits measured at less than £1 billion, according to a cost-benefit analysis conducted by the UK's chief financial watchdog, the Financial...
A new study by the UK's Financial Services Authority into risk management at insurance firms concludes that, although practices are improving in general, there is a long way to go before insurers are at the same standard as other types of financial services...
The Basel Committee on Banking Supervision released a paper in August outlining what the insurance industry must do to design op risk transfer products, including insurance and capital markets products.
The UK's main financial regulator, the Financial Services Authority (FSA), has released proposals for a shake-up of its capital regime for non-life insurers.
New York – The Basel Committee on Banking Supervision has granted financial institutions the option of using insurance to offset operational risk charges under the advanced measurement approach in the third consultative paper (CP3) – but not without...
Brussels – The European Commission issued the fourth consultation on the capital adequacy directive (Cad) on July 1.
US-based rating agency Moody's says "the quality of data and risk management are growing in importance as success factors" for insurance companies, and as a result it is putting additional emphasis on these areas when reviewing a company, according to...
In a speech today to the Westminster & City Twentieth Anniversary life insurance conference, the Financial Services Authority's John Tiner sought to clarify a letter, released last Friday, that relaxed the solvency regime for UK life assurers.
British banking industry bodies said in December they continue to expect that the operational risk aspects of the proposed Basel II bank safety accord will be revised in the light of banking industry experience.
The UK's Financial Services Authority (FSA) recently released feedback on responses to Discussion Paper 11, which focused on the effects of risk transfer between the banking industry and the insurance industry via credit derivatives and related products,...
LONDON – UK regulators are opposed to the wider use of operational risk insurance to reduce capital charges under complex new European Union (EU) safety rules for banks and investment firms, regulatory sources said.
BRUSSELS - The European Commission confirmed today it proposes the possible recognition of operational risk insurance as a way of reducing capital charges in all three methods of measuring op risk in its new protective capital rules for banks and investment...
European banks and investment firms would be able to use operational risk insurance to reduce capital charges in all approaches to measuring op risk under new European Union (EU) capital adequacy rules.
BASEL - The third Basel II quantitative impact study, or QIS 3, brings bankers up to date with the latest thinking of global banking regulators on the treatment of operational risk under the complex Basel II bank protective capital accord.
Insurers remain very keen to both guarantee and invest in credit derivatives products, but key regulators are about to release reports indicating that risk transfer between the insurance and banking sectors might not be such a good idea.
David Stone of Zions Bancorporation describes how the US bank plans to underpin its enterprise-wide risk management by implementing the Basel II accord’s advanced approaches to measuring operational risk.
Gerd Häusler, director of the international capital markets department at the International Monetary Fund (IMF), today highlighted that too little is known about where credit risk ultimately resides in the financial system.
LONDON - UK regulators said in late July they would implement their plans for uniform, risk-based rules for UK-based banks, insurance companies and securities firms in several stages, instead of one or two, following delays to the Basel II bank accord.
Insurance companies have been slower than banks to adopt advanced risk modelling techniques and technologies. But regulatory changes and business exigencies are spurring them to adopt a new generation of risk and capital management systems.
Insurance companies around the globe are beginning to look at their own risk management practices and are finding them wanting. As a result, many firms are beginning to upgrade their risk procedures.
Risk is the business of insurance companies, but risk management in the sector is not nearly as developed as it is in the banking industry. Now, a new crop of chief risk officers will be trying to change all that.
Global banking regulators working on the operational risk aspects of the controversial Basle II banking accord are concentrating their efforts on some key issues as they prepare their part of the so-called QIS3 survey.
LONDON - Combining risk transfer with risk financing might be one way of resolving regulator doubts about the use of insurance to mitigate operational risk under the proposed Basel II accord.
The proposed operational risk charge remains one of the most contentious areas of the new Basel Accord. Carol Alexander reviews the current proposals in the context of various simple models, and argues that practical implementation will require the use...