April 2022

Annual Insurance 23 1,301

current insurance members average annual frequency of loss events since 2016

Loss Report
Executive Summary
€7.4bn gross loss in the
database up until
the end of 2021

11,286
loss events
reported
up until the
end of 2021

An analysis of the operational risk

loss data in the ORX global insurance
database from 2016-2021 €523m total gross
loss in
2021

Managing risk together orx.org

 Annual Insurance Loss Report Executive Summary
Introduction
This summary is a snapshot of the ORX Annual Insurance Loss Report, which provides ORX Membership
insights and analysis on the operational risk loss data submitted as part of the ORX global
insurance service.
Available as part of ORX Membership, the ORX insurance service allows financial organisations to exchange
Join a community of
high-quality data relating to operational risk losses in a completely secure and anonymised way. operational risk professionals
About ORX from around the globe
Since 2002, ORX has supported financial institutions in all elements of their operational risk management. ORX is the largest not-for-profit industry
We are an ever-expanding global community of operational and non-financial risk professionals who come association supporting operational risk
together to share ideas, knowledge and experience. From research and data to events and collaboration, our aim management in financial services.
is to help financial institutions manage operational risk as efficiently and effectively as possible.
With over 100 member firms from around the
A note about the data used in this report world, we bring together a global community to
share knowledge, data, expertise and experience.
This summary provides a high-level view of operational risk losses as reported to the ORX global banking
database up to March 2022 (covering data with reporting dates up until the end of 2021 and not including events We provide research, data, insights and more to
marked as deleted). operational risk teams based all over the globe.
By enabling collaboration, we help the industry to
The loss data is submitted in accordance with the ORX Operational Risk Reporting Standards. By working closely improve operational risk management and
with our global community, we lead the way in setting the standards by which the industry views operational risk practice.
events. These standards are the foundation of ORX’s high-quality loss data.

We have separate reporting standards for both the banking and insurance sectors, both of which are free to
download at: managingrisktogether.orx.org/standards. Find out more about ORX Membership

Buy the full report for more insights and analysis

The full version of this report is available to purchase for £900 at engage.orx.org/buy/annual-loss-reports-2022.
The full report includes:

• Operational risk distributions and tail losses • Losses by business type

over the past six years
• Event frequency by business line and event
type
• Total loss by business line and event type
• Risk in focus – Coronavirus impact
• Risk in focus – Conduct risk
• Risk in focus – Cyber risk
• Geographic distribution of losses
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 Annual Insurance Loss Report Executive Summary

Overview of the ORX insurance loss data

23 1,301 11,286
loss events
reported
up until the
end of 2021
current insurance members average annual frequency of loss events since 2016

€7.4bn €523m
gross loss in the total gross
database up until loss in
the end of 2021 2021

Severity of loss Total gross loss of events The event type with the highest frequency for most business lines
from 2016-2021 was...
by region from reported per year
2016-2021 Execution, Delivery &
Process Management 3,990
These events are caused by failed transaction processing or process
management, from relations with trade counterparties and vendors.

Total coronavirus
event gross loss
tagged in the
€3bn
Western Europe: 45%
North America: 44% database
Asia Pacific: 5% Average Total conduct related
€752m €362.6m events reported to
Lating America & Caribbean: 3% annual
Africa: 2% gross loss:
Eastern Europe: 1% ORX

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 Annual Insurance Loss Report Executive Summary

The ORX insurance community

Table 1: Growth of the global insurance
Founding insurance members:
operational loss database

Cumulative total Cumulative frequency Total number of

gross loss of operational risk firms that have
Other insurance members events reported to contributed data
ORX
up to

2016 €3.4bn 4,570 12

up to

2017 €4.5bn 6,048 16

up to

2018 €5.1bn 7,295 17

up to

2019 €5.7bn 8,650 19

up to

2020 €6.9bn 10,131 21

up to

2021 €7.4bn 11,286 22

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 Annual Insurance Loss Report Executive Summary

Order the full report

The full version of the ORX Annual Insurance
Loss Report is available for you to purchase
for just £900.

Buy the full report for further analysis of the operational risk
loss data in the global insurance database, including:

• Operational risk distributions and tail losses over the

past six years
• Event frequency by business line and event type
• Total loss by business line and event type
• Losses by business type
• Risk in focus – Coronavirus impact
• Risk in focus – Conduct risk
• Risk in focus – Cyber risk
• Geographic distribution of losses

Order the full report

5
 Annual Insurance Loss Report Executive Summary

Managing risk together Report contact

ORX believes many heads are better than For more information about ORX Membership
one. We’re here to bring the best minds of the or to learn more about the full report contact:
international operational risk community together.
By pooling our resources and by sharing ideas, information and
experiences, we can learn how best to manage, understand and Roland Kennett
measure operational risk and become less vulnerable to losses. We Membership Director, ORX
work closely with over 100 member firms to develop a deeper Roland.Kennett@orx.org
understanding of the discipline and practical tools. We set the agenda,
maintain industry standards, and garner fresh insights.
ORX is owned and controlled on an equal basis by its members.
For more information about ORX, visit our website at www.orx.org Order the full report

Disclaimer: ORX has prepared this document with care and attention.
ORX does not accept responsibility for any errors or omissions. ORX
does not warrant the accuracy of the advice, statement or
recommendations in this document. ORX shall not be liable for any loss,
expense, damage or claim arising from this document. The content of
this document does not itself constitute a contractual agreement, and
ORX accepts no obligation associated with this document except as
expressly agreed in writing. ©ORX 2022

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Managing risk together orx.org