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 P2.5: 2.5 An appropriate catastrophe view of risk methodology

The syndicate defines and maintains an appropriate catastrophe view of risk. Baseline, natural: simple actuarial methods or an external model with high-level internal validation or adjustment; group-derived views understood and challenged for the syndicate; material expert judgement documented and governed to Solvency II standards including falsification criteria. Baseline, non-natural: a view based on simple aggregations, scenario results or loss history, with expert judgement documented, reviewed and challenged. Higher levels add analysis of own risk profile and losses, a validated model-driven view, governed expert judgement and continual development.

Maintained by Gerard Blokdyk

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