Underwriting Audit & Reinsurance Inspections
This work can be carried out on an internal or external basis and may encompass:
Any and all other limitations or requirements imposed by management.
External: The same disciplines may be applied to Reinsurance Inspections, to ensure complete adherence to treaty terms and conditions.
Internal: Lloyd’s and the Financial Conduct Authority (FCA)/ Prudential Regulation Authority (PRA) are placing increasing emphasis on stringent independent review of the underwriting process and underwriters’ adherence to their syndicate’s approved plans. Their objective is to establish that managing agents have effective systems and controls over each managed syndicate’s underwriting. These controls encompass adherence to:
- The syndicate’s annual business plan and underwriting policy
- The underwriters’ terms of reference and authorities
- Pricing policy
- Exposure management information requirements
- The syndicate’s reinsurance arrangements
- Requirements to achieve Pre-Bind Quality Assurance (PBQA), including Contract Certainty
- External regulatory requirements
The process should also include:
- Review of internal Claims Management and Accounting procedures
- Any and all other limitations or requirements imposed by management
External: See External Coverholders’ Review page