Principles for Doing Business at Lloyd's P6.1: 6.1 Clear governance and ownership of the reserves

Governance and ownership of reserves are clear. The guidance covers governance, ownership, board challenge and reporting. Baseline: defined roles and responsibilities with time for senior review and challenge; current documentation of the approach; actuarial recommendations presented so the board can prioritise; board ownership of reserves for accounting and solvency, direct action after material movements including lessons learned; use of reserve estimates in strategic decisions; a board that understands the level of reserves, drivers of deterioration or release, key uncertainties and linkages, challenges appropriateness, is trained and understands differences between internal and external estimates; regular committees and accurate board reporting on emerging experience, assumptions, uncertainty and market conditions. Higher levels add a review framework with stage owners, independent third-party review, deep dives and tailored, visual reporting.