The unique structure of Lloyd’s requires a tailored framework to manage risks facing the market and the Corporation.
All managing agents are expected to have in place a comprehensive risk framework to manage the risks facing their businesses. The Corporation continuously reviews the capabilities of managing agents and their track record to ensure they meet the minimum standards set for operating within the Lloyd’s market.
Lloyd’s risk framework provides an additional layer of review, oversight and challenge to ensure the aggregate risk profile for Lloyd’s is at an acceptable level and that the Corporation manages its own risks effectively.
Key Risks for 2014
- Failure to obtain Solvency II internal model approval
- Failure to implement Lloyd’s international growth strategy
- The Insurance Cycle
- Catastrophe risk
- Significant regulatory change across multiple jurisdictions
- Unstable economic, financial and political climate
- Strategic threats