The latest article from our Operational Risk Solutions team
provides a spotlight on complexities and opportunities of including
insurance within regulatory capital frameworks.
The conversation surrounding the inclusion of insurance within
regulatory capital frameworks, whilst not new, remains a critical
area for exploration in risk management. Over the past two decades,
this concept has evolved, yet its practical application continues
to challenge many professionals.
At WTW, we have taken a deep dive into this subject to shed
light on both the complexities and the opportunities inherent in
this integration.
Understanding the regulatory landscape
Regulatory frameworks such as Basel II/III and Solvency II offer
a context for this discussion but lack clear directives on
integrating insurance into capital models. A detailed examination
of these frameworks reveals nuances that can influence a firm's
approach. For instance, the way operational risks are treated
