Market Oversight
Lloyd’s has made fundamental changes to the Oversight Framework to create a more efficient and joined-up approach to provide the conditions for the best businesses to thrive and drive decisive interventions for underperforming businesses.
These changes will ;
- allow more focus on the oversight outcomes we seek to achieve, as opposed to the processes conducted;
- provide a way of differentiating managing agent approaches based on their materiality;
- allow managing agent senior management to interpret and apply Lloyd’s expectations in the way most appropriate to their business;
- create clarity, transparency and efficiency across the market for all participants;
- be resilient to change over time by moving away from prescriptive detail;
- focus on the most important key areas of operating at Lloyd’s.
Lloyd’s Oversight Framework
The Lloyd’s Oversight Framework has three interlinking elements that work together to support more differentiated and impactful oversight:
The Principles for doing business at Lloyd’s
The Principles articulate the fundamental responsibilities expected of all managing agents in order to support the market’s overall performance, capital strength, financial and reputational credibility. The suite of 13 Principles are outcomes based and allow for more differentiation according to syndicate materiality. These replace the minimum standards and are the basis against which we view and categorise all syndicates and managing agents in terms of both their capability and performance.
Syndicate Categorisation
One consistent approach to syndicate and agent categorisation based on assessment against the Principles, both on a qualitative and quantitative basis, across the 13 Principles. Under the framework, there are five different categories:
Outperforming
Good
Moderate
Underperforming
Unacceptable
Interventions and Incentives
Oversight and the application of interventions are directly informed by a syndicate’s categorisation. For businesses on the lower end of the scale, a range of interventions can be applied to remediate and ensure they return to expected performance. For those businesses at the top end of scale there will continue to be a range of incentives to support growth and development to help those businesses thrive.
Principles for doing business at Lloyd’s
The Principles articulate the fundamental responsibilities expected of all managing agents in order to support the market’s overall performance, capital strength, financial and reputational credibility. The suite of 13 Principles are outcomes based and allow for more differentiation according to syndicate materiality. These replace the minimum standards and are the basis against which we view and categorise all syndicates and managing agents in terms of both their capability and performance.
Self-assessment Guidance and Template
As part of the "soft launch" of the new framework the market is not required to submit the usual minimum standard attestation in 2022. However, Lloyd's are requesting a "best efforts" self-assessment from managing agents against the new Principles by the end of April 2022.
Market Oversight Plan 2022
This oversight plan is to provide managing agents with a summary of the Corporation’s view of the key risks facing the market in 2022.
Useful information
Requirements and standards
Requirements and standards for being part of the Lloyd's market, Acts and byelaws and Brand guidelines.
Minimum Standards
Until fully transitioned to principles based oversight in Q2 2022, you can find the Minimum Standards here.
Core Data Record
The Core Data Record (CDR) will ultimately enable standardised, quality data to flow through the Lloyd’s market.