
The use of insurance policies to mitigate operational risk 237
Also, imperfect scientific knowledge makes it very difficult, if not outright impossible,
to establish a pattern – and therefore to calculate accurate insurance premiums for
operational risk events.
11.4 Advent of insurance-linked protection vehicles and
underwriters risk
One of the key questions that will be posed with insurance coverage of operational
risk, if it becomes popular, is how it should be treated from a financial reporting
viewpoint. The answer to this is still pending, but a useful inference can be made
through analogical reasoning from the accounting status of derivatives