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 P2.10: 2.10 Governance and oversight of risk aggregations

Risk aggregations are governed and overseen. Baseline: an established risk framework including catastrophe risk and exposure management; board and senior management regularly discuss material issues; high-level independent and internal review; exposures and model output reviewed against Lloyd's thresholds, with Lloyd's approval sought for any actual or foreseeable exceedance. Higher levels add a specific exposure management framework, second or third line review, board understanding and challenge of models, regular exposure committees and targeted deep dives.

Maintained by Gerard Blokdyk

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