Effective systems for the management and control of all elements of the reinsurance process should be in place.
The reinsurance process is expected to be explicitly considered in the business planning, underwriting and ICA processes.
There should be a documented process for the selection and approval of a reinsurer and any intermediary used in the placement of reinsurance.
The managing agent should monitor and assess the security of, and exposure to reinsurers and intermediaries on all reinsurances. A process should exist to give consideration to the level of exposure to each reinsurer.
Any Qualifying Quota Share arrangements or amendments should be agreed with Lloyd's in advance.
All terms (including signed down lines) of all outwards reinsurance contracts are expected to comply with the principles of Contract Certainty.
