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Principles for doing business at Lloyd’s

The heart of our Oversight Framework

The Principles for doing business at Lloyd’s (“The Principles”) are at the heart of our Oversight Framework and set out the fundamental responsibilities expected of all managing agents in order to support the markets’ overall performance, capital strength, financial and reputational credibility.

The Principles provide a clear and consistent articulation of the outcomes expected and recognise that different syndicates and managing agents will deliver against the Principles in many different ways.

The Principles are supported by guidance in the form of a Maturity Matrix. Click on each individual principle below to review their respective sub-principles and specific FAQ’s.

Materiality and the Maturity Matrix

Across the large number of syndicates and managing agents in the market, we recognise that there will be many different ways to deliver against the Principles and the main differentiator is materiality: the more material a syndicate is to a particular Principle, the more sophisticated we would expect the syndicate’s capabilities to be to meet that Principle. The measures that determine materiality vary by dimension. The materiality metrics and thresholds are available using the button below.

These different levels of sophistication are described as a Maturity Matrix, from FOUNDATIONAL level applying to the least material syndicates through to ADVANCED level applying to the most material.

Principle: A brief statement setting out the fundamental expectation expected of all managing agents and articulated at the highest level.
Sub-principles: A number of statements that set out the key areas supporting the Principle.
Maturity Matrix & Guidance: Technical level guidance setting out indicators and examples of different ways that the Principles and Sub-Principles could be met across a spectrum ranging from the lowest to the highest materiality. The guidance is expressed in terms of outcomes, capabilities, and processes but is not prescriptive.

The Principles

Further information