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 P2.7: 2.7 A materially complete representation of catastrophe risk in the syndicate view of risk

Catastrophe risk is represented materially completely in the syndicate view of risk. Baseline: the internal model's representation is materially complete, materiality is defined, methodology and assumptions meet Solvency II; for natural perils the view reflects current and near-future climate conditions for the period of risk; for non-natural perils it includes risk from prior years and emerging risks are assessed for inclusion. Higher levels add supplemental modelling or adjustment for key perils using exposure data, capital implications in decisions, and a forward-looking completeness process.

Maintained by Gerard Blokdyk

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