Way forward… There will inevitably be many failures in the bancassurance relationships in this market. Such failures would potentially cause a lot of troubles and volatility in terms of Banca productivities for different insurers. While insurers do have a problem in productivity, the bigger problem would be for bankers to…

Current challenges 1) Although the bancassurance concept is extremely appealing to insurers, banks failed to do the proper due diligence before selecting the bancassurance business partner. Bancassurance arrangements could be fitted into the definition of M&A transactions where cultures of two companies meet at the bank’s teller counter. It can…

This article talks about the potential of the bancassurance business in Vietnam as it has become a scorching topic for the last few years and continues to dominate the headlines of insurance industry news at the moment. We all have seen numerous bancassurance agreements between banks and insurance, especially the…

Operational Incident & Loss Data, and Capital Calculation Internal loss data: Types of operational risk incident An operational risk incident is a result of an operational risk event i.e., failed or inadequate internal processes, people and systems or an external event.  The following are some key types of operational risk…

Key Risk Indicators Key indicator definitions Risk, Control and Performance Indicators are common but distinct metrics used in the industry.  All can play a valuable role in the measurement of the risk profile – as long as it is understood that each measures a different aspect of the business process…

Operational Risk framework To help manage operational risk, insurance companies are increasingly looking to build or modify their existing operational risk management framework. A commonly seen model includes seven components, which are Governance: vision, guiding principles, risk strategy, risk appetite, organization structure, risk glossary Risk assessment and management processes Capital:…

This article will examine the basics of operational risk management for insurance industry; although definition and the type of operational risks facing financial services companies share similar attributes, insurance industry in Vietnam has been more vulnerable to these than other companies in the financial services sector. We will look at…

The process of money laundering and financing of terrorism Money laundering is the processing of the proceeds of crime to disguise their illegal origin. Once these proceeds are successfully ‘laundered’ the criminal is able to enjoy these monies without revealing their original source. Money laundering can take place in various…