
262 Operational Risk Control
Like any other insurer Munich Re is exposed to operational risk. One case alone, 11
September 2001, cost the company an estimated $1.9 billion. This is said to be the
largest ever insurance loss. The challenge independent rating agencies face is to answer
in a reliable way the query: Has the insurer the assets and solvency to absorb such
shocks? Answers to such questions are usually confidential, based on selected criteria.
12.5 Information is the critical product of rating agencies
As section 12.4 has demonstrated, both qualification and quantification are integral
parts of an analysis for credit rating. The evaluation ...