Bank of Italy – Analysis on the relevance of operational risks for businesses

In the first months of last year, the Bank of Italy conducted an analysis regarding the relevance of operational risks for Italian banks and their related insurance coverage for businesses.

Among the results published on March 14th in a note on the authority’s website, emerged that in the granting of financing to businesses, banks do not take coverage insurance into account. In fact, if businesses would take out specific policies, which could reduce expenses related to events connected to operational risks, thus also helping to mitigate the credit risk assumed by banks.

According to reports from credit institutions, the main reason presented by banks appears to be the to include information about the existing insurance coverage into credit assessment models.
In conclusion, the note proposes to (i) adapt the models used by intermediaries and (ii) make suitable policies available to be incorporated into such models, in order to allow operators to more fully exploit the benefits of insurance policies.