Principle
The managing agent has effective controls over its outwards reinsurance arrangements.
Minimum standards
Effective controls include:
- A clear and comprehensive plan for the reinsurance of each syndicate managed, agreed by the board, which takes into account the managing agent’s risk appetite for retained insurance risk and the potential for the accumulation of risk and multiple losses.
View guidance on reinsurance plan.
- Systems and controls for the management of all elements of the outwards reinsurance programme for each managed syndicate.
View guidance on systems and controls.
- A clear definition of authority to purchase and reporting lines.
View guidance on authority to purchase.
- A clearly defined approach to using non-standard reinsurance.
View guidance on non-standard insurance.
View additional notes on reinsurance.
