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.
The CPG’s role is 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 risk profile, to support the business plan
As part of its review of syndicate plans and capital, the CPG considers Managing Agent’s current status against Solvency II requirements; any areas of non-compliance are addressed through CPG decision making.
The information reviewed is a result of analysis and input from a wide range of technical experts, including Account Managers, Syndicate Performance, Underwriting, Capital, Reserving, Syndicate Capability Oversight, Risk Aggregation and Risk Management.
Lloyd’s has a long track record of evolving and enhancing the CPG annually. Further enhancements are being implemented to the plan and capital setting process, based on proactive engagement with the market.
The duties of the CPG are:
- 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).