Principles for Doing Business at Lloyd's P1.3: 1.3 Underwriting controls, monitoring and reporting appropriate to the risk profile

Underwriting controls, monitoring and reporting fit the syndicate's risk profile so the plan is delivered. The guidance covers five areas. Underwriting authority: prevention and detection controls aligned to the plan; signed, annually reviewed authorities tied to each underwriter's experience; clear escalation including licence periods; breaches reported upwards and to Compliance; deviation from technical price controlled. Pre- and post-bind analysis: when leading, risk-based pre-bind reviews of all contracts with amendment controls, suitable pre-bind analysis for follow business, and current model user guides. Delegated underwriting authority business: timely, granular third-party information validated by sample checks, segmental performance analysis, alignment with appetite, reviews of coverholder guidelines and controls, referral processes, conflict management and annually reviewed binding authority agreements. Reporting: robust MI to the board with limitations explained, exception reporting of variances and control failures, and external reporting as an extension of internal reporting. Higher levels add capacity deployment rules, authority matrices, automated limit tracking and bias oversight.