Principles for Doing Business at Lloyd's
Principle 2: Catastrophe Exposure (2a natural, 2b non-natural) – Principles for Doing Business at Lloyd's

Principles for Doing Business at Lloyd's P2.1: 2.1 Manage catastrophe exposure within agreed risk appetites and tolerances

Catastrophe exposure is managed within agreed appetites and tolerances. Baseline for both natural and non-natural perils: risk appetite statements exist, exposures are monitored against them and reported to senior management and the board, and business plans reflect the appetites (for non-natural, and vice versa). Higher levels derive appetites from the view of risk, cascade them to business functions and underwriting units with tolerances, limits and breach management, and make them forward-looking and responsive to events.

Maintained by Gerard Blokdyk

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