Managing agents should define and execute syndicate outwards reinsurance strategy and purchasing plans which effectively support the wider syndicate business strategy and objectives.
To support this, managing agents should ensure their syndicates:
Principle 3: Outwards Reinsurance
Outwards reinsurance strategies and purchasing plans are robust and reflect the underwriting, exposure and capital management / appetites of each individual syndicate, and the best interests of the members of the syndicate
Have appropriate systems, controls, procedures and expertise to enable the effective management of outwards reinsurance purchasing and recoveries
Live and potential financial, operational, counterparty, contract and liquidity risks arising from outwards reinsurance arrangements are identified, monitored, evaluated and mitigated
Have robust and effective monitoring, reporting and governance frameworks employed over their outwards reinsurance arrangements
Outwards Reinsurance Maturity Matrix
The Maturity Matrix for Outwards Reinsurance 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 documentCollateralised Reinsurance - Best Practice Report
This report shares Lloyd’s market-wide insights in relation to the reinsurance collateral management and controls, with observed themes and best practice. It is intended both for syndicates seeking ways to improve their management of collateralised reinsurance risk, and for syndicates looking to set up the processes and controls needed to use collateral for the first time.
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