Viatical/Life Settlements is a class that has been identified by Lloyd’s as posing potentially a reputational risk to Lloyd’s.
Therefore, no syndicate should write this class without prior agreement by Lloyd’s. Lloyd’s will require full details of the managing agent’s proposals for writing this class before approval will be given. In particular, managing agents should be able to provide the following information:
- How the managing agent will manage the potential reputational risks to Lloyd’s;
- The underwriting process used to write the business, including the methodology used to price the business;
- The methodology used to reserve for the business, including controls used to manage the long-tail effects of the business;
- The process used for the handling of claims;
- The operational controls in place to manage the business.
- An explanation of the products offered; and
Details of the experience of the underwriter and support staff.
Performance Management – Supplemental Requirements and Guidance, page 5