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📋 '''Line guide''' is an internal underwriting document that establishes the maximum amount of [[Definition:Insurance coverage | coverage]] or [[Definition:Line (insurance) | line]] an [[Definition:Underwriter | underwriter]] is authorized to write on a particular class or type of risk without seeking additional approval. Functioning as a risk-control guardrail, the line guide specifies limits by [[Definition:Line of business | line of business]], territory, hazard grade, or occupancy class, ensuring that individual [[Definition:Underwriting | underwriting]] decisions stay within the boundaries set by senior management or the [[Definition:Insurance carrier | carrier's]] risk appetite framework. In [[Definition:Delegated underwriting authority (DUA) | delegated authority]] arrangements, line guides are especially critical because they define the scope within which a [[Definition:Managing general agent (MGA) | managing general agent]] or [[Definition:Coverholder | coverholder]] can bind business on behalf of the insurer.

⚙️ A typical line guide is structured as a matrix that cross-references variables such as coverage type, [[Definition:Policy limit | policy limit]], [[Definition:Deductible | deductible]] range, and risk classification. When an underwriter evaluates a submission that falls within the parameters of the guide, they can quote and bind the [[Definition:Insurance policy | policy]] without escalation. If the risk exceeds any threshold — say, the requested limit surpasses the maximum for that occupancy class — the underwriter must refer it to a senior authority or a [[Definition:Referral (underwriting) | referral panel]]. Carriers periodically revise their line guides to reflect changes in [[Definition:Loss experience | loss experience]], [[Definition:Reinsurance | reinsurance]] program capacity, and strategic portfolio goals.

🎯 Without well-calibrated line guides, an insurer risks accumulating outsized [[Definition:Aggregation risk | aggregations]] in a single territory or class, potentially breaching its [[Definition:Risk appetite | risk appetite]] or straining its [[Definition:Reinsurance treaty | treaty reinsurance]] protections. They also play a central governance role during [[Definition:Lloyd's | Lloyd's]] or regulatory audits, providing evidence that the carrier maintains disciplined [[Definition:Underwriting authority | underwriting authority]] controls. For [[Definition:Insurtech | insurtech]] platforms automating the quote-and-bind process, encoding line guide rules into decision engines is a foundational step — ensuring speed-to-market does not come at the expense of portfolio integrity.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Underwriting authority]]
* [[Definition:Binding authority agreement]]
* [[Definition:Risk appetite]]
* [[Definition:Delegated underwriting authority (DUA)]]
* [[Definition:Aggregation risk]]
* [[Definition:Referral (underwriting)]]
{{Div col end}}

Definition:Line guide - Revision history

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