In response to increased regulatory and financial pressures affecting financial institutions, XL Catlin is launching customized operational risk coverage in Canada and around the world.
“Essentially the solution helps business leaders put the right capital structure in place to support their businesses effectively,” said Gerard Bloom, chief underwriter officer financial institutions. “Being able to build insurance into both capital models and internal financial reports also helps leaders discharge their Pillar 2 obligations by ensuring the right strategies are in place to manage their risk.
“Our Financial Institutions clients tell us that they need the insurance market to find innovative solutions for their operational risks and capital management. Our depth of expertise in both operational risk and financial lines underwriting combined with significant capacity means we can help them with even the most substantial risks.”
With regulatory and financial pressures forcing banks to change the way they assess and manage their operational risks, XL Caitlin says the insurance will addressing significant operational risk exposures and also act as an instrument to boost regulatory capital and offset economic capital requirements.
“Because each firm’s profile is different, when it comes to insurance, one size does definitely not fit all,” said Angelos Deftereos, senior underwriter, operational risks. “Each solution reflects the firm’s risk as they themselves have articulated it, using their own terminology, and understanding of their operational risk.
“These highly tailored and specific solutions are designed to provide absolute clarity of coverage giving operational risk practitioners and regulators the confidence that they will work as intended when needed. Combined with our large capacity of $100 million - $300 million per operational risk, and the ability to cover multiple risks per client, our flexibility in crafting customized coverage allows us to develop solutions meaningful to even the largest financial institutions.”
