Here's a conundrum: banks don't like the insurance policies that are available to cover operational risk, and yet they keep buying them. Why? Largely, it's because of a scarcity of viable alternatives – and this scarcity is now helping to revive interest in the long-mooted but little-explored idea of op risk derivatives.
Gripes with current insurance policies range from their myriad exclusions (for example, many business interruption policies won't pay out unless the insured suffers property
The week on Risk.net, July 7-13, 2018Receive this by email