Market Reserving Team
The Market Reserving team, led by Jerome Kirk, performs the following functions:
- Monitor syndicate and market reserve levels, including independent projections and quarterly reserve monitoring to provide advance warning of any adverse class of business movements. This includes undertaking specific investigations on significant market events or losses.
- Co-ordinates, supports and reviews the Statement of Actuarial Opinion (SAO) process. SAOs are produced annually for solvency purposes and opine on the adequacy of syndicate’s technical provisions.
- Producing the Agent Reserve Benchmarking Packs to provide a single document enabling Lloyd’s and managing agents to analyse reserving levels relative to the market as a whole and identify potentially anomalous positions.
- Providing support to the International Market Access team in meeting overseas regulatory requirements. This includes Canada, Switzerland, Hong Kong, China and Australia. In particular, the team calculates the aggregate trust fund requirements for Lloyd’s Canadian regulated business.
- Supports Open Years Management in assessing reserves and related risk of Central Fund dependent syndicates.
- Assisting the Market Capital Team in reviewing syndicate Individual Capital Assessment (ICA) submissions.
Market Capital Team
The Capital Modelling team, led by Veekash Badal, is responsible for the following:
- Leading the Capital Systems Upgrade project. This will generate more consistency and transparency to the capital setting approach, creating tools that can be used to demonstrate the capital advantages benefit of being at Lloyds.
- Development and running of the Lloyd’s stochastic model in producing the Lloyd’s Society ICA, as well as working with other departments, in order to determine the necessary aggregate economic capital level for Lloyd’s.
- Joint management of the syndicate ICA review process with main focus on the actuarial/capital modelling aspects of syndicate ICAs. Also responsible for the enhancement and maintenance of tools to monitor and benchmark syndicate ICA submissions.
- Maintenance of the RBC (Risk Based Capital) system in order to determine capital requirements for members of Lloyd’s. This also involves developing the Economic Capital Assessment software for release to the market, and estimating the associated risk exposure to the Central Fund. The RBC system also produces syndicate capital requirements to aid in the approval process of new syndicates.
- Providing advice to senior management on all general areas of capital setting, eg new agent admissions and Solvency II. The department also sponsors a PhD student from the Cass business school to assist in the continued research into capital modelling techniques.
- Setting assumptions for capital models.
