Definition - What does Guiding Principles mean?
Guiding principles are the parameters that inform the way a business and its employees or representatives operate. These principles are often laid out either as a promise to clients and customers or as an assurance that there will be uniformity in dealing with the company.
Insuranceopedia explains Guiding Principles
It was once common for insurance companies to draft guiding principles for the insurance policies they issued. These would give assurance to the policyholders that their claims would be handled in good faith, as well as add a level of transparency.
Guiding principles could specify targeted turnaround times, provide an outline of how information collected through the claims process would be used by the insurer, and what documents the claimant would be required to submit.
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