Managing agents should ensure syndicates set reserves which are underpinned by a robust reserving process. All Actuarial Function requirements should be met in line with Solvency II.
To support this, managing agents should ensure their syndicates:
Principle 6: Reserving
Have clear governance and ownership of the reserves
Make appropriate allowance for uncertainties when setting reserves
Use assumptions to set reserves which are realistic, transparent and consider historical experience
Identify, understand and justify any differences in assumptions between reserving and other functions
Periodically and objectively challenge the reserving processes and assumptions
Set best estimate reserves in line with Solvency II principles, with any allowance for UK GAAP margins set explicitly in addition
Reserving Maturity Matrix
The Maturity Matrix for Reserving 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 document