Principles for Doing Business at Lloyd's
Principle 8: Investments – Principles for Doing Business at Lloyd's

Principles for Doing Business at Lloyd's P8.6: 8.6 Asset-liability modelling consistent with the use test

Asset-liability modelling capability is consistent with use test principles. Baseline: high-level appreciation of the interaction of assets, liabilities and liquidity in strategy; some investment uses of an internal model compliant with Solvency II and the use test; assumptions largely from an external model; group-derived assumptions understood and challenged. Higher levels add full integration with investment governance, liquidity and solvency, consideration of matching approaches, second line challenge including rate shocks, and evidence that the asset mix meets liabilities in amount and timing.

Maintained by Gerard Blokdyk

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