Underwriting Profitability

Underwriting runs like a river: plan, price, bind, monitor, review. The checkpoints sit where that river already narrows. They run from the board's approval of the business plan to the yearly pricing sign-off, the monthly review of bound risks and the quarterly performance review. As expected maturity rises, strategy refresh, KPI tracking and pricing validation come out as standalone controls.

This page sets out the controls for the Underwriting Profitability Principle under the checkpoint approach. Lloyd's gives guidance for this Principle at Foundational, Intermediate, Established and Advanced. Mapped line by line, the Foundational guidance gives 22 controls, and the checkpoint approach brings that down to 8 to evidence. Pick the level Lloyd's expects of you to see what you test, then look one level up to see what comes out next.

• Hurdle Principle
• • Foundational
  • Intermediate
  • Established
  • Advanced

What is inside

• What Lloyd's expects under Underwriting Profitability, paraphrased, at Foundational, Intermediate, Established and Advanced
• The controls to evidence: 8 at Foundational, against 22 mapped line by line
• The checkpoints, and the controls that stand alone at each level Lloyd's sets
• Oversight effort: about 28 hours a year at Foundational, month by month
• A PDF pack to take to your committee

The numbers at each level

Expected level	Mapped line by line	To evidence	Checkpoints	Standalone	Assessment updates a year	Hours a year at 1 hour per update
Foundational	22	8	7	1	28	28 Low
Intermediate	45	13	7	6	77	77 Medium
Established	67	21	7	14	113	113 Medium
Advanced	88	22	7	15	117	117 Medium

Hours: assessment updates a year at one hour per update.

All Lloyd's Principles · How the checkpoint approach works