Insurance Against Financial Consequences of Operational Risks
The Central Securities Depository fof Poland (KDPW S.A.) and AIG Europe Limited have signed a PLN 100 million (ca. EUR 24 million) insurance agreement. The agreement is effective until 30 June 2014. The agreement provides insurance coverage against operational risks of the core and auxiliary business of the securities depository KDPW S.A. and the clearing house KDPW_CCP S.A.
In particular, the insurance cover includes events of embezzlement of financial instruments and cash owned by KDPW and KDPW_CCP or other entities, held in accounts of KDPW and KDPW_CCP or in accounts of other entities maintained by KDPW and KDPW_CCP.
The coverage also includes any losses resulting from computer crime.
In addition, the insurance policy covers the risks of professional liability of financial institutions (interest or damages for default or inadequate performance of obligations by KDPW S.A. and KDPW_CCP S.A.).
The insurance against financial consequences of operational risks increases the safety of the operations and is a part of risk management in the KDPW Group. The insurance is effective constantly since 1 July 2009.