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…
LONDON - Leading insurance firms planned to have ready by early November their proposals for using operational risk insurance within the terms of the Basel II banking accord, insurance industry sources said as Operational Risk went to press.
BASEL - Bank regulators considering allowing op risk insurance a role in the proposed Basel II bank accord will study closely how the insurance industry deals with the massive insurance claims arising from the September 11 attacks in the US. So said…
Insurance companies must not waste time now the Basel II regulators have shown an amber light to operational risk insurance, say Roland Avery and Daniel Butler.