Conduct risk has become an increasingly important topic in the insurance industry recently and is of particular importance where authority is delegated to a third party.
It is critical that the decision to delegate authority is taken with careful consideration of conduct matters and the implementation of appropriate controls to ensure conduct risk is managed appropriately. When reviewing applications submitted to the delegated authority department at Lloyd’s we will consider the conduct implications of the proposal and may request additional conduct related information as necessary.
For more information on conduct risk and the Lloyd’s Conduct Minimum Standards please click here.
Q: Should following markets on Binding Authorities use LMA9116.
A: Lloyd's advises that this isn't mandatory but it's very strongly encouraged.