The FSA has published a detailed assessment of the failures of 20 leading insurance companies across Europe.
The paper, "Managing risk: practical lessons from recent failures of EU insurers", contains a detailed analysis of 20 insurance company failures in the last six years and identifies the risk that insurers face.
Paper author Deloitte & Touche insurance practice manager William McDonnell said: "In some cases the failure was the result of a combination of risks which you might not think would be linked, such as underwriting risk, investment risk and operational risk. The combination of risk can lead to a vicious circle."
McDonnell said that the paper would be a useful tool for insurers undertaking risk analyses as the FSA did not provide a framework to follow.
