The underwriting risk management policy must—
| (a) |
identify the nature of the insurer's insurance business, including, but not limited to— |
| (i) |
the classes of insurance to be underwritten; and |
| (ii) |
the types of risks that may be underwritten and those that are to be excluded; |
| (b) |
describe the formal risk assessment process in underwriting, including, but not limited to— |
| (i) |
the criteria used for risk assessment; |
| (ii) |
the method(s) for monitoring emerging experience; and |
| (iii) |
the method(s) by which the emerging experience is taken into consideration in the underwriting process; |
| (c) |
provide for decision-making processes and controls where non-mandated intermediaries or underwriting managers perform binder functions on behalf of the insurer in accordance with Part 6 of the Regulations made under the Act; |
| (d) |
set out the actions to be taken by the insurer to assess and manage the risk of loss, or of adverse change in the values of insurance and reinsurance liabilities, resulting from inadequate pricing and provisioning assumptions; |
| (e) |
set out the relevant data (quantity and quality) to be considered in the underwriting and reserving processes; and |
| (f) |
provide for the regular review of the adequacy of claims management procedures, including the extent to which they cover the overall cycle of claims. |
Protection of Businesses Act, 1978
