The Corporation of Lloyd's
The Corporation oversees and supports the Lloyd’s market, ensuring it operates efficiently and retains its reputation as the market of choice for specialist insurance and reinsurance risk.
The Corporation’s role includes:
- Ensuring that policyholders and members are protected through Lloyd’s oversight of the market. This includes agreeing syndicate business plans and capital requirements and evaluating performance against business plans. Lloyd’s reviews each syndicate’s business plan and, if the managing agent is able to demonstrate that the plan is appropriate and justifiable having regard to its performance and capabilities, then Lloyd’s will agree the plan. The managing agent must then underwrite in accordance with that plan, compliance with which is monitored by Lloyd’s. This is set out in the Underwriting Byelaw.
- Lloyd’s publishes minimum standards and monitors compliance with those minimum standards. Lloyd’s byelaws also set out a number of rules with which market participants are required to comply.
- The Corporation of Lloyd’s is under statutory and regulatory obligations to act prudently in its oversight of the market, in particular to maintain market stability, protect its credit rating and prevent underwriting behaviour which threatens the Central Fund. Without such arrangements, imprudent or negligent underwriting could imperil Lloyd’s ongoing financial viability, ratings and reputation, which would not be in the interests of policyholders.
- Providing services that the participants in the Lloyd’s market require to trade at Lloyd’s. This includes the infrastructure for processing risks that have been placed with Lloyd’s underwriters, operating and maintaining the Lloyd’s building and maintaining Lloyd’s international network of trading licences and offices.
- Promoting the market’s attractiveness to capital providers, distributors and clients, whilst preserving its diversity.