Insurer Discusses Op Risk Guaranteed Bond With Apcims
LONDON -- Talks on the possibility of devising a bond that could guarantee immediate payment to compensate for an operational loss are taking place between a leading insurance company and UK investment industry representatives.
The aim is to allay one of the mains fears of banking regulators about the use of op risk insurance -- namely, that insurance companies would be too slow in paying out on a claim if a crisis-hit bank needed capital immediately.
A guaranteed bond would pay out immediately if
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