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Operational risk

P

Priyanka Malhotra

Active Member
Hi, could someone please help me understand what’s redundancy exercise and why would an insurance company would undertake it?


“Aggregation / concentration risk if a group version of the product is sold, eg to a company which then undertakes a redundancy exercise”
 
Priyanka Malhotra said:
Hi, could someone please help me understand what’s redundancy exercise and why would an insurance company would undertake it?


“Aggregation / concentration risk if a group version of the product is sold, eg to a company which then undertakes a redundancy exercise”
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Hi Priyanka

An insurance company may decide that it wants to reduce expenses. One way to do this is to reduce the number of staff it employs. A redundancy exercise is the process that a company must follow to decide who will lose their job and what compensation they might receive.

If you let me know where you have seen this quote then I could comment more specifically on its context.

Best wishes

Mark
 
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