Principles for Doing Business at Lloyd's
Principle 1: Legacy Reinsurance Underwriting Profitability (RITC syndicates) – Principles for Doing Business at Lloyd's

Principles for Doing Business at Lloyd's P1a.7: 1a.7 Governance of legacy underwriting decisions

Robust governance supports legacy underwriting decisions with assumptions clearly understood and challenged. Baseline: an underwriting governance framework with reporting lines and committees; no binding bid without approval of the appropriate committee, which includes independent non-executive directors, confirming consistency with the internal rate of return in the business plan; bids detailed enough for the committee to test assumptions against the plan and market expectations; a documented record of whether due diligence followed the approved process, available to the approving committee. Higher levels add a no-blame culture for reporting underwriting issues and active board challenge of parameters and assumptions.

Maintained by Gerard Blokdyk

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