Principles for Doing Business at Lloyd's P1.7: 1.7 Robust governance of underwriting decision making with challenge from the wider functions

Governance supports underwriting decisions, with assumptions clearly stated and understood and challenged by the wider functions. Baseline: an underwriting governance framework with defined reporting lines and committees; regular internal audit, peer review and independent peer review covering a representative share of risks, with recommendations reported to senior management and escalated to the board; governance and change control over underwriting strategy, appetite and pricing models; underwriting strategy, planning and KPI monitoring engaging reinsurance, exposure management, claims, reserving and capital; underwriters held to account. Higher levels add decisions on when models and guides need review, full class coverage of reviews, a no-blame culture for reporting underwriting issues tied to appraisal, forward-looking committees and targeted deep-dive reviews.