Better together: insurers hear case for op risk unity

European insurers are seeking common ground in the modelling of operational risk, hoping to reach the kind of consensus that has eluded their bank peers

Operational risk is sometimes called the forgotten risk, but European insurers are waking up to the possibility of modelling it more effectively using loss data built up over the past decade. With regulators providing little guidance on op risk management, however, and insurers following hugely divergent approaches, the industry is struggling to find a framework that suits everyone.

Rules on operational risk modelling are clearly not a priority in Solvency II or for the European Insurance and