Halden reportsOperations
Halden report · OperationsHow does the business actually run?
Through 14 connected process lines. Two of Halden's stops carry a failed control: DA oversight, at the coverholder audit, and Reserving, at the claims authority agreement.
CoVi · Process mapFictitious
How the business runs
Halden's process map, drawn as a tube map by Context Visualised.
Everything that touches brokers and policyholders: winning business, writing it, servicing it and paying claims.
Dashed rings hand over to the back office- Brokers
- Coverholders
- DA oversight (interchange)KeyCoverholder audits and bordereaux checks, where today's weakest controls sit.✕ 1 failed⚠ 3 incidentsBack office · Risk cycle
- Owned coverholder
- Fronting partners
- Submission (interchange)Underwriting
- Submission (interchange)Distribution
- Triage
- PricingKeyTechnical price set against the plan; rate change tracked.
- Peer review
- Bind & issue (interchange)KeyThe front office hub: policy goes live, premium goes to finance, sanctions are checked.Policy servicingClaimsBack office · Finance & FP&ABack office · Compliance
- Bind & issue (interchange)KeyThe front office hub: policy goes live, premium goes to finance, sanctions are checked.UnderwritingClaimsBack office · Finance & FP&ABack office · Compliance
- Endorsements
- Bordereaux (interchange)Back office · IT & data
- Renewal (interchange)KeyServicing feeds renewals back into distribution, closing the loop.Distribution
Loops back to the start and runs continuously.
- Bind & issue (interchange)KeyThe front office hub: policy goes live, premium goes to finance, sanctions are checked.UnderwritingPolicy servicingBack office · Finance & FP&ABack office · Compliance
- Notification
- Adjusting
- Reserving (interchange)KeyClaims set case reserves; actuarial adds IBNR on top.✕ 1 failed⚠ 2 incidentsBack office · Actuarial & capital
- Settlement
- Recoveries (interchange)Outwards reinsuranceBack office · Finance & FP&A
- Programme design
- PlacementKeyThe outwards programme is bought; 28% of premium is ceded.
- Cessions
- Recoveries (interchange)ClaimsBack office · Finance & FP&A
Everything that keeps the business planned, funded, invested, controlled and staffed, with IT and people running underneath.
Dashed rings hand over to the front office- Business planning (interchange)KeyThe SBF: premium, loss ratios and reinsurance by class, agreed with Lloyd's.Front office · Underwriting
- Premium booking (interchange)Front office · Underwriting
- Credit control
- Forecasting
- Financial reporting
- Tax
- Regulatory returns (interchange)Compliance
- Cash & liquidity (interchange)Finance & FP&A
- Investment strategy & ALM (interchange)Actuarial & capital
- Asset manager mandates
- Investment monitoringKeyReturns, credit quality and duration checked against the investment guidelines.
- Custody & accounting
- Reserving (interchange)KeyClaims set case reserves; actuarial adds IBNR on top.✕ 1 failed⚠ 2 incidentsFront office · Claims
- Reserve review
- Capital modelKeySets the capital requirement and funds at Lloyd's.
- ORSA (interchange)KeyCapital, reserves and the risk profile come together for the board.Risk cycle
- Results & investor reporting (interchange)Finance & FP&A
- Capital providers (interchange)Actuarial & capital
- Rating agenciesKeyMaintaining the rating that brokers and clients rely on to place business.
- Market & media
- Risk identification
- Risk assessment
- Control testingKeySecond line tests key controls; results feed the risk register.
- KRI monitoring
- ORSA (interchange)KeyCapital, reserves and the risk profile come together for the board.Actuarial & capital
- Internal audit (interchange)Internal audit
- Board reporting
Loops back to the start and runs continuously.
- Audit universe
- Risk-based audit plan
- Fieldwork & testing (interchange)Risk cycle
- Findings & ratings
- Action tracking
- Audit committee (interchange)Risk cycle
- KYC & licensing
- Sanctions screening (interchange)Front office · Underwriting
- Conduct & complaints
- Regulatory change
- Regulator relationship
- Regulatory returns (interchange)Finance & FP&A
Loops back to the start and runs continuously.
- Policy admin system
- Bordereaux (interchange)Front office · Policy servicing
- Data warehouse
- Cyber securityKeyProtects the policy, claims and finance systems everything runs on.
- IT resilience
- Workforce planning
- Recruitment
- Training & competence (interchange)KeyKeeps underwriting and claims authorities backed by skills.Front office · Underwriting
- Performance & reward
- Payroll (interchange)Finance & FP&A
- Pensions & benefits
- Culture
Process map · Distribution
DA oversight
How we approve, monitor and audit the coverholders who write business on our behalf.
- 10Activities · 11 risks
- 1/15Controls failed
- 3Active incidents
Process flow · select a step
Risks outside authority found?
Renew the binding authority?
Red badges count failed controls; outlined badges count active incidents raised against a control mapped to that step. Dashed boxes are decisions; committee steps are tagged where they sit in the flow.
Process map · Claims and Actuarial & capital
Reserving
How a claim turns into a booked reserve: case reserves from claims, IBNR from actuarial, signed off by committee.
- 7Activities · 9 risks
- 1/12Controls failed
- 2Active incidents
Process flow · select a step
Large loss above threshold?
Red badges count failed controls; outlined badges count active incidents raised against a control mapped to that step. Dashed boxes are decisions; committee steps are tagged where they sit in the flow.
Red badges count failed controls, and outlined badges count active incidents. Tap a stop to see its process flow, then a step to see its risks and controls.
Source: process library, risk register, control library and incident log at 30 Sep 2026.
Step 1 · DA oversight
Onboard the coverholder
Inputs
Outputs
What happens
Due diligence on ownership, financial standing, licences, sanctions and systems before Lloyd's approval is sought.
Active incidents
INC-026 · on C-147Remediation in progressSanctions alert cleared without supporting evidenceOpened 3 Sep 2026
Risks mapped
- OR-06.3Weak coverholder oversight9 · Medium
- OR-07.2Bribery and corruption4 · Low
- OR-07.1Sanctions breach8 · Medium
Controls mapped
- C-150Third-party due diligenceEffective
- C-147Sanctions screeningEffective
- C-141DA oversight committeeEffective
Step 2 · DA oversight
Set up the binding authority
Inputs
Outputs
What happens
Agree classes, territories, limits and premium caps, then load them into the policy system.
Risks mapped
- OR-06.1Coverholder binding outside authority16 · High
- OR-04.3Licensing breaches4 · Low
Controls mapped
- C-124Territory controls in the policy systemEffective
- C-123Licensing checks before bindingEffective
Step 3 · DA oversight
Receive and validate bordereaux
Inputs
Outputs
What happens
Bordereaux are loaded, mapped and checked against authority limits and data standards.
Active incidents
INC-033 · on C-015OpenBinder bordereaux received six weeks lateOpened 19 Sep 2026
Risks mapped
- OR-06.1Coverholder binding outside authority16 · High
- IR-02.2Reserving data quality6 · Low
- OR-08.1Poor quality underwriting data9 · Medium
Controls mapped
- C-138Bordereaux validationPartial
- C-015Bordereaux data validationEffective
- C-151Data quality rulesEffective
Risks outside authority found? Yes
Refer and remediate the breach
Inputs
Outputs
What happens
The class underwriter reviews each breach, agrees cancellation or endorsement and logs it as an incident.
Risks mapped
- OR-06.1Coverholder binding outside authority16 · High
Controls mapped
- C-141DA oversight committeeEffective
Risks outside authority found? No
Accept and book
Inputs
Outputs
What happens
Clean bordereaux are accepted and premium is booked to the ledger.
Risks mapped
- CR-02.3Premium credit control failure6 · Low
Controls mapped
- C-063Aged debt monitoringEffective
Step 4 · DA oversight
Quarterly performance review
Inputs
Outputs
What happens
Each coverholder is scored on profitability, data quality, conduct and audit results.
Risks mapped
- OR-06.3Weak coverholder oversight9 · Medium
- IR-01.4Adverse selection in growth classes9 · Medium
Controls mapped
- C-142Coverholder scorecardsPartial
- C-007Portfolio steering reviewsEffective
Step 5 · DA oversight
DA oversight committee
Inputs
Outputs
What happens
Monthly committee reviews coverholder performance, breaches and audit results, sets the watch list and recommends renewals.
Risks mapped
- OR-06.3Weak coverholder oversight9 · Medium
- OR-06.1Coverholder binding outside authority16 · High
Controls mapped
- C-141DA oversight committeeEffective
- C-142Coverholder scorecardsPartial
Step 6 · DA oversight
Annual coverholder audit
Inputs
Outputs
What happens
On-site or remote audit of underwriting, claims handling, conduct and client money.
Active incidents
INC-031 · on C-137OpenCoverholder bound 23 risks outside its agreed territoryOpened 12 Sep 2026
Risks mapped
- OR-06.1Coverholder binding outside authority16 · High
- OR-09.1Poor customer outcomes6 · Low
Controls mapped
- C-137Coverholder audits✕ Failed
- C-155Consumer Duty MIEffective
Renew the binding authority? Renew
Renew on revised terms
Inputs
Outputs
What happens
Terms, limits or classes are adjusted to reflect performance and findings before renewal.
Risks mapped
- IR-01.4Adverse selection in growth classes9 · Medium
Controls mapped
- C-030Binder renewal pipelineEffective
Renew the binding authority? Exit
Non-renew and run off
Inputs
Outputs
What happens
The coverholder is notified and in-force policies and claims are managed to expiry.
Risks mapped
- IR-04.2Loss of coverholder agreements6 · Low
Controls mapped
- C-029Coverholder relationship plansEffective
Step 1 · Reserving
Capture the claim
Inputs
Outputs
What happens
The claim is registered against the policy, cover is checked and an initial reserve is set.
Active incidents
INC-026 · on C-147Remediation in progressSanctions alert cleared without supporting evidenceOpened 3 Sep 2026
Risks mapped
- OR-05.3Claims leakage6 · Low
- OR-07.1Sanctions breach8 · Medium
Controls mapped
- C-134Fraud screeningEffective
- C-147Sanctions screeningEffective
Large loss above threshold? Yes
Large loss committee
Inputs
Outputs
What happens
Claims above the large loss threshold are reviewed fortnightly and the reserve is agreed by committee.
Risks mapped
- IR-02.1Long-tail casualty reserve inadequacy12 · Medium
- OR-05.3Claims leakage6 · Low
Controls mapped
- C-133Large claims committeeEffective
Large loss above threshold? No
Adjuster sets case reserve
Inputs
Outputs
What happens
The adjuster sets and updates the case reserve within their authority.
Risks mapped
- OR-05.3Claims leakage6 · Low
Controls mapped
- C-134Fraud screeningEffective
Step 2 · Reserving
Reconcile delegated and fronted claims
Inputs
Outputs
What happens
Third-party claims data is reconciled to the ledger and checked for timeliness.
Active incidents
INC-028 · on C-140Under investigationUAE fronted claims settled outside agreed timescalesOpened 28 Aug 2026
Risks mapped
- IR-02.2Reserving data quality6 · Low
- OR-06.2Fronting partner claims handling failure16 · High
Controls mapped
- C-016Reserving data reconciliationEffective
- C-140Quarterly claims file auditsPartial
- C-139Claims authority agreement✕ Failed
Step 3 · Reserving
Estimate IBNR and best estimate
Inputs
Outputs
What happens
Actuarial projects ultimate losses by class and adds IBNR for claims not yet reported.
Risks mapped
- IR-02.1Long-tail casualty reserve inadequacy12 · Medium
- IR-01.3Social inflation in US casualty12 · Medium
- IR-02.3Climate litigation6 · Low
Controls mapped
- C-005Claims trends fed into pricingEffective
- C-018Emerging risk monitoringEffective
Step 4 · Reserving
Reserving committee
Inputs
Outputs
What happens
Claims, actuarial, finance and underwriting agree booked reserves and any margin.
Risks mapped
- IR-02.1Long-tail casualty reserve inadequacy12 · Medium
Controls mapped
- C-013Quarterly reserving committeeEffective
- C-014Independent actuarial reviewPartial
Step 5 · Reserving
Book and report
Inputs
Outputs
What happens
Reserves are booked and flow into the financial statements, technical provisions and Lloyd's returns.
Risks mapped
- OR-05.1Material misstatement4 · Low
- OR-04.5Lloyd's and Solvency II reporting errors6 · Low
Controls mapped
- C-129Month-end close reviewEffective
- C-128Four-eyes review of returnsEffective
What it tells us
What it tells us this quarter
- 1 of 15
The DA oversight stop holds 10 activities and 11 risks, and 1 of its 15 controls has failed: coverholder audits.
- 23
That failed step carries incident INC-031: 23 risks bound outside territory, found four months late.
- 1 of 12
The reserving stop holds 7 activities and 9 risks, and 1 of its 12 controls has failed: the claims authority agreement. Two incidents are active there.
What we did
What we did about it
Actions on the DA oversight stop, from Halden's action log.
- ACT-035
Clear the coverholder audit backlog (6 overdue)
- Owner
- Head of Delegated Authority
- Policy (approved by)
- Delegated authority · Underwriting committee
- Due
- 30 Sep 2026 ⚠ overdue
- ACT-038
Remediate Ridgeway Underwriting breaches (INC-031)
- Owner
- Head of Delegated Authority
- Policy (approved by)
- Delegated authority · Underwriting committee
- Due
- 31 Oct 2026
- ACT-036
Chase late binder bordereaux (INC-033)
- Owner
- Head of Delegated Authority
- Policy (approved by)
- Delegated authority · Underwriting committee
- Due
- 15 Oct 2026
Actions are listed under the policy they sit in. The action log does not record a deciding committee.
Sources
Where the numbers come from
Steps, risks and controls come from process records, and delegated authority steps also read coverholder bordereaux and audits. Lloyd's 2026 Market Oversight Plan puts delegated business at about 45% of the market's premium.
- Board dataprocess library, risk register, control library and incident log at 30 Sep 2026
Follow the data
Related reports
One email a month: "This month at Halden". Email address only.
Halden is fictitious. Its numbers are illustrative.