SINGAPORE, Dec 6 (Bernama-BUSINESS WIRE) — The collapse of the cryptocurrency exchange FTX highlights the importance of effective corporate governance, according to a new AM Best commentary.
The Best’s Commentary, “Corporate Governance Lessons for Insurers in the Wake of the Failure of FTX,” notes that although FTX is not an insurance company, the series of events leading to its collapse should nonetheless provide a sobering warning for the insurance industry. AM Best typically takes a favourable view of an insurance company enterprise risk management (ERM) frameworks, which incorporate lessons learned from recent events and emerging issues. Equally, AM Best expects insurers with strong governance practices to be better able to manage risks.
