Capital Planning Group
Overview
A cross directorate and multi-functional decision-making committee that is responsible for reviewing and agreeing business plans and capital requirements
The Capital Planning Group (CPG) is a key part of Lloyd’s governance and oversight, bringing together the processes of business plan review, capital setting and independent risk oversight.
Role of the CPG
The approval of syndicate business plans and capital requirements is one of the key controls used by Lloyd’s to manage the insurance risks arising from the market. Syndicate proposals are reviewed and approved by the CPG.
The CPG is accountable to and receives its decision-making authority from the Chief of Markets & Chief Financial Officer. Its key duties are to:
- Approve business plans for the market to meet the Council’s risk appetite for the prospective year of underwriting.
- Set capital, based on past performance and future risks, to support the business plan.
CPG meets regularly through the year, though most of its activity is concentrated between September and November when it reviews and approves plan and capital submissions for the subsequent year.
Duties of the CPG
- To approve all Business Plans and Capital requirements in a consistent and fair manner by appropriate deadlines and meeting Lloyd’s agreed prudential and business objectives.
- To approve Business Plan and Capital requirements of new syndicates and/or managing agents.
- To approve any Franchise Guideline dispensations.
- To agree the format, facilitate production of and sign-off the cross-Corporation view and documentation released to managing agents.
- To communicate decisions made by the group to key stakeholders within Lloyd’s and to managing agents.
- To co-ordinate with the Business Opportunities Committee (BOC) and Executive Risk Committee (ERC).
Supporting resources
Capital Guidance
Lloyd’s has set out guidance and key principles surrounding the setting of capital for syndicates.
Exposure management
Responsible for the Corporation’s understanding and control of catastrophe risk, at the individual Syndicate and Market levels.
