Managing agents should ensure syndicates maintain appropriate control of catastrophe risk (from natural and non-natural perils) in line with business strategy.
To support this, managing agents should ensure their syndicates:
Principle 2: Catastrophe Exposure
Manage catastrophe exposure in line with their agreed risk appetites and tolerances
Employ appropriate tools to support effective and efficient exposure data capture, management and use
Adopt a robust risk-based framework for exposure quantification and monitoring, to support downstream decision making
Have the teams and expertise in place to meet the business needs, including strategic projects, regular deliverables and research and development
Define and maintain an appropriate cat view of risk methodology
Implement appropriate risk-based validation of the cat view of risk
Maintain a materially complete representation of cat in the syndicate view of risk
Adopt a robust risk-based framework for managing changes to cat view of risk and exposure management methodologies
Maintain consistent understanding, use and continual development of cat view of risk outputs
Have robust governance and oversight of risk aggregations
Catastrophe Exposure Maturity Matrix
The Maturity Matrix for Catastrophe Exposure is available within the Principles and Maturity Matrix document, which can be found on our Principles for doing business at Lloyd’s page.
Access Principles and Maturity Matrix documentFAQs
There is only one expected maturity rating covering all non-nat cat lines of business (see detailed list below). When performing our reviews against the Principles for non-nat cat, we will consider exposure management approaches relative to the materiality of the underlying lines of business in a proportionately appropriate way. If a syndicate writes a lot of cyber business relative to other lines for example, we would expect their exposure management approach to be relative to the risk posed to the syndicate. However, an overall maturity rating will be applied across lines of business at sub-principle level and then aggregated to principle level for non-nat cat as a whole.
The non-nat cat lines of business can be found below:
Accident & Health (direct)
Airline
Aviation Products/ Airport Liabilities
Aviation XL
Casualty Treaty (non-US)
Casualty Treaty (US)
Contingency
Cyber
Directors & Officers (non-US)
Directors & Officers (US)
Employers Liability/ WCA (non-US)
Employers Liability/ WCA (US)
Energy Construction
Energy Offshore Property
Energy Onshore Property
Financial Institutions (non-US)
Financial Institutions (US)
General Aviation
Marine Hull
Marine Liability
Marine XL
Medical Malpractice
NM General Liability (non-US direct)
NM General Liability (US direct)
Nuclear
Power Generation
Professional Indemnity (non-US)
Professional Indemnity (US)
Terrorism
Energy Offshore Liability
Energy Onshore Liability
Personal Accident XL
Political Risks, Credit & Financial Guarantee
Space
The non-nat cat lines of business can be found below:
Accident & Health (direct)
Airline
Aviation Products/ Airport Liabilities
Aviation XL
Casualty Treaty (non-US)
Casualty Treaty (US)
Contingency
Cyber
Directors & Officers (non-US)
Directors & Officers (US)
Employers Liability/ WCA (non-US)
Employers Liability/ WCA (US)
Energy Construction
Energy Offshore Property
Energy Onshore Property
Financial Institutions (non-US)
Financial Institutions (US)
General Aviation
Marine Hull
Marine Liability
Marine XL
Medical Malpractice
NM General Liability (non-US direct)
NM General Liability (US direct)
Nuclear
Power Generation
Professional Indemnity (non-US)
Professional Indemnity (US)
Terrorism
Energy Offshore Liability
Energy Onshore Liability
Personal Accident XL
Political Risks, Credit & Financial Guarantee
Space