The Financial Crisis of 2008 and Subsequent Market Changes
The Business Case for Insurers to Adopt Operational Risk Management
Insurance: Its Products, Services and Business Operations
Insurers’ Operational Risk Governance and Framework
External Loss Data
Risk and Control Assessments
Reporting and Analysis
The Past, the Present and the Future of Operational Risk Modelling
The Insurance Landscape
Three Lines of Defence
In this chapter, we look at the financial-services sector of insurance, what it offers as products and services and how it operates. Insurance underpins all of industry and people’s lives, protecting buildings, people and items, in the case of damage or loss. Therefore, it is a vital part of the financial sector; without insurance people might not take some of the investment risks that they do, and society would therefore be poorer in terms of goods and services produced and the associated jobs.
The types of insurance that people and businesses require and the types available should be aligned, but not always. Sometimes, customised packages are required or, instead of typical outright insurance, products might be purchased from financial services firms, such as banks, in order to achieve the same effect. An example is the purchase of credit default swaps, which are a form of insurance against the credit defaults of other companies.
Price differentiation is not possible or lawful in some industries but, in the insurance company, it is both lawful and necessary; we will, in this chapter, look specifically at gender price differentiation and understand how recent