Reinsurance strategy and purchasing plans are robust and reflect the underwriting, exposure and capital management appetites of each syndicate and the best interests of its members. Foundation: documented reinsurance design objectives proportionate to the arrangements; strategy and plans reflect underwriting strategy and appetite for retained risk and acknowledge risks the reinsurance itself creates; board (or delegated committee) approval with annual review of purchasing plans; a clear strategy for selecting and approving counterparties; material amendments approved and documented; plans considered consistently across planning, exposure management, accounting and capital; reinsurance financials validated; compliance with Lloyd's supplemental requirements; review when circumstances or reinsurers change; collaborative setting; coverage included in the internal model. Higher levels add board review of economic and capital performance, reinsurer evaluation, independent second or third line review, embedding in pricing and risk selection, efficacy reviews and horizon scanning.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.