Chartis said that while banks are directing their risk management to regulatory demands, they should also be looking at improving risk management to improve profitability.
The emphasis on regulatory capital adequacy has short-changed economic capital, capital allocation and might hamper efforts to use capital efficiently to price risk, Chartis reported.
On Thuesday, the company said it would combine the employee benefits of its property insurance unit Chartis and life insurance business American General into a new unified employee benefits organization, named AIG Benefit Solutions.