Principles for Doing Business at Lloyd's
Principle 6: Reserving – Principles for Doing Business at Lloyd's

Principles for Doing Business at Lloyd's P6.3: 6.3 Realistic, transparent reserving assumptions that consider historical experience

Reserving assumptions are realistic, transparent and informed by history. Baseline: assumptions documented and justified against historical experience, not solely pricing or planning; validation where not derived from own data; justified deviations from experience; emerging risks considered with allowance based on market information, exposures and internal work. Higher levels add benchmarking, sensitivity testing and materiality ranking, scheduled deep dives, cross-functional working parties on emerging risks and allowances for events not in data.

Maintained by Gerard Blokdyk

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