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Expensive Mistakes: Operational Risk in Life Insurance
Author(s) -
Ferris Shauna
Publication year - 2012
Publication title -
risk management and insurance review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.386
H-Index - 16
eISSN - 1540-6296
pISSN - 1098-1616
DOI - 10.1111/j.1540-6296.2012.01221.x
Subject(s) - actuarial science , liability , life insurance , business , asset (computer security) , operational risk , risk analysis (engineering) , economics , risk management , finance , computer science , computer security
Although insurers have developed sophisticated techniques for measuring and managing mortality risks, asset–liability mismatch, and interest rate risks, they may underestimate the potential cost of operational risks. This is a case study of an Australian life insurer, which made a series of very expensive mistakes.