Principles for Doing Business at Lloyd's
Principle 7: Capital – Principles for Doing Business at Lloyd's

Principles for Doing Business at Lloyd's P7.3: 7.3 Strong feedback loops joining the business and the model

The business and the model are joined by strong feedback loops. Baseline: material expert judgements justified, documented with falsifiability criteria and reviewed by qualified people; feedback between model inputs and subject matter experts with documented differences; an expert judgement log; model uses including economic capital, capital allocation at least by risk category and the ORSA, tracked and documented, with use in board decisions evidenced. Higher levels add cross-functional working parties, uses beyond the 99.5th percentile, wide business use (returns on capital, appetite, investment and reinsurance decisions) and model uses linked to the development plan.

Maintained by Gerard Blokdyk

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