Insurers unsure how to model operational risk

Insurers unsure how to model operational risk

At an Oxial briefing held in London in early February, Alex Hindson, chair of the Institute of Risk Management (IRM) and head of risk at UK insurance firm Amblin, addressed the difficult topic of modelling operational risk to an audience made up largely of insurance firms.

Almost 75% of the UK insurance industry is opting for the internal model approach, according to a survey conducted by the IRM in late 2010, so firms need to get a handle on how to model operational risk exposure, as they will

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