Principles for Doing Business at Lloyd's
The thirteen Principles for doing business at Lloyd's, the outcomes-based requirements against which Lloyd's categorises every syndicate and managing agent, replacing the Minimum Standards: underwriting profitability (and its legacy reinsurance variant), catastrophe exposure, outwards reinsurance, claims management, customer outcomes, reserving, capital, investments, liquidity, governance, risk management and reporting, regulatory and financial crime, operational resilience and culture, with every sub-principle and its Maturity Matrix guidance from Foundational to Advanced. Edition published November 2025.
Principles for Doing Business at Lloyd's is a compliance framework from United Kingdom (Lloyd's market) with 14 domains and 81 controls. The largest domains are Principle 2: Catastrophe Exposure (2a natural, 2b non-natural) – Principles for Doing Business at Lloyd's (10 controls), Principle 1: Underwriting Profitability – Principles for Doing Business at Lloyd's (8 controls), Principle 8: Investments – Principles for Doing Business at Lloyd's (7 controls). Every control below carries what it requires and what an assessor expects to see.
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Framework Domains (14)
Principle 10: Governance, Risk Management and Reporting – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P10.1 | 10.1 A board and committee structure enabling informed, timely and accountable decisions |
| principles-for-doing-business-at-lloyd-s::P10.2 | 10.2 A strong risk and control environment with appropriate challenge |
| principles-for-doing-business-at-lloyd-s::P10.3 | 10.3 Oversight of operational processes |
| principles-for-doing-business-at-lloyd-s::P10.4 | 10.4 People with appropriate skills and adequate resourcing |
| principles-for-doing-business-at-lloyd-s::P10.5 | 10.5 Decision making supported by appropriate data and qualitative assessment |
| principles-for-doing-business-at-lloyd-s::P10.6 | 10.6 High-quality, timely, accurate and complete reporting to Lloyd's and regulators |
Principle 11: Regulatory and Financial Crime – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P11.1 | 11.1 A culture of transparency, regulatory and financial crime compliance |
| principles-for-doing-business-at-lloyd-s::P11.2 | 11.2 A robust understanding of regulatory and financial crime risk exposure and appetite, subject to challenge |
| principles-for-doing-business-at-lloyd-s::P11.3 | 11.3 Systems and controls, including training, for regulatory responsibilities and financial crime risk |
Principle 12: Operational Resilience – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P12.1 | 12.1 Operate a robust operational resilience framework |
| principles-for-doing-business-at-lloyd-s::P12.2 | 12.2 Maintain oversight of operational resilience through governance and the risk and control environment |
| principles-for-doing-business-at-lloyd-s::P12.3 | 12.3 Maintain appropriate cyber resilience |
Principle 13: Culture – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P13.1 | 13.1 Leadership focus on an inclusive, high-performance culture at all levels |
| principles-for-doing-business-at-lloyd-s::P13.2 | 13.2 Inclusive behaviour with zero tolerance for inappropriate behaviour |
| principles-for-doing-business-at-lloyd-s::P13.3 | 13.3 Psychological safety to speak up, diverse perspectives and continuous improvement |
| principles-for-doing-business-at-lloyd-s::P13.4 | 13.4 Diverse representation, inclusive hiring and retention, and a market that attracts talent |
| principles-for-doing-business-at-lloyd-s::P13.5 | 13.5 Use employee data and insight to create an inclusive employee experience |
Principle 1: Legacy Reinsurance Underwriting Profitability (RITC syndicates) – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P1a.1 | 1a.1 Legacy strategy and underwriting risk appetite considering existing legacy transactions |
| principles-for-doing-business-at-lloyd-s::P1a.2 | 1a.2 Legacy business plans aligned with the business strategy |
| principles-for-doing-business-at-lloyd-s::P1a.4 | 1a.4 Legacy expense management |
| principles-for-doing-business-at-lloyd-s::P1a.6 | 1a.6 Sustainable pricing for legacy transactions |
| principles-for-doing-business-at-lloyd-s::P1a.7 | 1a.7 Governance of legacy underwriting decisions |
Principle 1: Underwriting Profitability – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P1.1 | 1.1 Medium to long term business strategy with a clearly defined and understood underwriting risk appetite |
| principles-for-doing-business-at-lloyd-s::P1.2 | 1.2 Annual business plans that align with the business strategy |
| principles-for-doing-business-at-lloyd-s::P1.3 | 1.3 Underwriting controls, monitoring and reporting appropriate to the risk profile |
| principles-for-doing-business-at-lloyd-s::P1.4 | 1.4 Manage and control expenses so they are appropriate for the business written |
| principles-for-doing-business-at-lloyd-s::P1.5 | 1.5 Robust portfolio management to deliver the agreed business plan |
| principles-for-doing-business-at-lloyd-s::P1.6 | 1.6 An effective pricing framework to evaluate sustainable technical price and rate adequacy |
| principles-for-doing-business-at-lloyd-s::P1.7 | 1.7 Robust governance of underwriting decision making with challenge from the wider functions |
| principles-for-doing-business-at-lloyd-s::P1.8 | 1.8 Processes supporting decisions on integrating sustainability into underwriting |
Principle 2: Catastrophe Exposure (2a natural, 2b non-natural) – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P2.1 | 2.1 Manage catastrophe exposure within agreed risk appetites and tolerances |
| principles-for-doing-business-at-lloyd-s::P2.10 | 2.10 Governance and oversight of risk aggregations |
| principles-for-doing-business-at-lloyd-s::P2.2 | 2.2 Tools for effective exposure data capture, management and use |
| principles-for-doing-business-at-lloyd-s::P2.3 | 2.3 A risk-based framework for exposure quantification and monitoring |
| principles-for-doing-business-at-lloyd-s::P2.4 | 2.4 Exposure management teams and expertise |
| principles-for-doing-business-at-lloyd-s::P2.5 | 2.5 An appropriate catastrophe view of risk methodology |
| principles-for-doing-business-at-lloyd-s::P2.6 | 2.6 Risk-based validation of the catastrophe view of risk |
| principles-for-doing-business-at-lloyd-s::P2.7 | 2.7 A materially complete representation of catastrophe risk in the syndicate view of risk |
| principles-for-doing-business-at-lloyd-s::P2.8 | 2.8 A risk-based framework for managing changes to the catastrophe view of risk |
| principles-for-doing-business-at-lloyd-s::P2.9 | 2.9 Consistent understanding, use and continual development of catastrophe outputs |
Principle 3: Outwards Reinsurance – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P3.1 | 3.1 Robust outwards reinsurance strategies and purchasing plans reflecting each syndicate's appetites and its members' interests |
| principles-for-doing-business-at-lloyd-s::P3.2 | 3.2 Systems, controls, procedures and expertise for reinsurance purchasing and recoveries |
| principles-for-doing-business-at-lloyd-s::P3.3 | 3.3 Identify, monitor, evaluate and mitigate risks arising from outwards reinsurance |
| principles-for-doing-business-at-lloyd-s::P3.4 | 3.4 Monitoring, reporting and governance frameworks over outwards reinsurance |
Principle 4: Claims Management – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P4.1 | 4.1 Claims management integral to the syndicate business plan and the medium to long term strategy |
| principles-for-doing-business-at-lloyd-s::P4.2 | 4.2 Claims resource and expertise with a method to measure and maintain adequacy |
| principles-for-doing-business-at-lloyd-s::P4.3 | 4.3 Proactive claims management supported by appropriate infrastructure |
| principles-for-doing-business-at-lloyd-s::P4.4 | 4.4 Accurate and timely case reserving in line with the reserving philosophy |
| principles-for-doing-business-at-lloyd-s::P4.5 | 4.5 Delegated claims handling delivered consistently and effectively |
| principles-for-doing-business-at-lloyd-s::P4.6 | 4.6 Governance and executive oversight of claims outcomes |
Principle 5: Customer Outcomes – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P5.1 | 5.1 Board-set conduct culture promoting good customer outcomes across the product lifecycle |
| principles-for-doing-business-at-lloyd-s::P5.2 | 5.2 Product design and oversight through governance meeting target market expectations |
| principles-for-doing-business-at-lloyd-s::P5.3 | 5.3 No barriers to clear and fair sales and post-sales services |
| principles-for-doing-business-at-lloyd-s::P5.4 | 5.4 Fair and prompt claims and complaints handling in line with a servicing commitment |
| principles-for-doing-business-at-lloyd-s::P5.5 | 5.5 Engage, manage and oversee third-party service providers |
| principles-for-doing-business-at-lloyd-s::P5.6 | 5.6 Regular, robust oversight of customer outcomes using data and qualitative assessment |
Principle 6: Reserving – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P6.1 | 6.1 Clear governance and ownership of the reserves |
| principles-for-doing-business-at-lloyd-s::P6.2 | 6.2 Appropriate allowance for uncertainties when setting reserves |
| principles-for-doing-business-at-lloyd-s::P6.3 | 6.3 Realistic, transparent reserving assumptions that consider historical experience |
| principles-for-doing-business-at-lloyd-s::P6.4 | 6.4 Identify, understand and justify differences in assumptions between reserving and other functions |
| principles-for-doing-business-at-lloyd-s::P6.5 | 6.5 Periodic, objective challenge of reserving processes and assumptions |
| principles-for-doing-business-at-lloyd-s::P6.6 | 6.6 Best estimate reserves under Solvency II with any UK GAAP margin explicit |
Principle 7: Capital – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P7.1 | 7.1 An internal model capturing all material risks |
| principles-for-doing-business-at-lloyd-s::P7.2 | 7.2 Realistic, justifiable assumptions, adequate methodology and understood limitations |
| principles-for-doing-business-at-lloyd-s::P7.3 | 7.3 Strong feedback loops joining the business and the model |
| principles-for-doing-business-at-lloyd-s::P7.4 | 7.4 Robust governance and senior understanding and challenge of the model |
| principles-for-doing-business-at-lloyd-s::P7.5 | 7.5 Reasonable, justified model changes with the SCR impact explained |
| principles-for-doing-business-at-lloyd-s::P7.6 | 7.6 Objective challenge of the internal model through independent validation |
Principle 8: Investments – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P8.1 | 8.1 Clear investment objectives and risk appetites linked to business or solvency strategy |
| principles-for-doing-business-at-lloyd-s::P8.2 | 8.2 Clear investment parameters and guidelines with limit monitoring |
| principles-for-doing-business-at-lloyd-s::P8.3 | 8.3 Investment stress testing integrated into investment management |
| principles-for-doing-business-at-lloyd-s::P8.4 | 8.4 Oversight of investment performance and risk including outsourced arrangements |
| principles-for-doing-business-at-lloyd-s::P8.5 | 8.5 Develop and embed a Responsible Investment Policy |
| principles-for-doing-business-at-lloyd-s::P8.6 | 8.6 Asset-liability modelling consistent with the use test |
| principles-for-doing-business-at-lloyd-s::P8.7 | 8.7 Robust investment governance |
Principle 9: Liquidity – Principles for Doing Business at Lloyd's
| Code | Title |
|---|---|
| principles-for-doing-business-at-lloyd-s::P9.1 | 9.1 Identify and assess key sources of liquidity risk with monitoring and reporting |
| principles-for-doing-business-at-lloyd-s::P9.2 | 9.2 Stress testing including Lloyd's defined stress test and the syndicate's own 1-in-200 |
| principles-for-doing-business-at-lloyd-s::P9.3 | 9.3 Clearly defined liquidity risk appetites |
| principles-for-doing-business-at-lloyd-s::P9.4 | 9.4 Regular assessment of liquidity buffers above expected cash flows |
| principles-for-doing-business-at-lloyd-s::P9.5 | 9.5 Thorough liquidity contingency plans |
| principles-for-doing-business-at-lloyd-s::P9.6 | 9.6 Robust governance of liquidity risk |
What is Principles for Doing Business at Lloyd's and who does it apply to?
Principles for Doing Business at Lloyd's is a compliance framework from United Kingdom (Lloyd's market) with 14 domains and 81 controls. The thirteen Principles for doing business at Lloyd's, the outcomes-based requirements against which Lloyd's categorises every syndicate and managing agent, replacing the Minimum Standards: underwriting profitability (and its legacy reinsurance variant), catastrophe exposure, outwards reinsurance, claims management, customer outcomes, reserving, capital, investments, liquidity, governance, risk management and reporting, regulatory and financial crime, operational resilience and culture, with every sub-principle and its Maturity Matrix guidance from Foundational to Advanced. Edition published November 2025. It is used by organisations to establish and maintain compliance with industry standards and regulatory requirements.
What does Principles for Doing Business at Lloyd's actually require?
Principles for Doing Business at Lloyd's has 81 controls organised across 14 domains. The largest domains are Principle 2: Catastrophe Exposure (2a natural, 2b non-natural) – Principles for Doing Business at Lloyd's (10 controls), Principle 1: Underwriting Profitability – Principles for Doing Business at Lloyd's (8 controls), Principle 8: Investments – Principles for Doing Business at Lloyd's (7 controls). Each control defines specific requirements that organisations must implement to achieve compliance.
If I already comply with another framework, how much of Principles for Doing Business at Lloyd's do I already cover?
Principles for Doing Business at Lloyd's does not currently have cross-framework mappings in our system. Check back as we continuously expand our mapping database.
How do I implement Principles for Doing Business at Lloyd's?
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