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Principle 10: Governance, Risk Management and Reporting

Managing agents should have governance structures and internal risk management and control frameworks in place which align to Solvency II requirements, enable sound and prudent management of the business and support delivery of the business strategy.

To support this, managing agents should:

Manage a suitable Board and committee structure which enables well informed, timely and accountable decision making

Operate a strong risk and control environment which allows for appropriate challenge

Maintain appropriate oversight of operational processes for effective management of the business

Employ and develop people with appropriate skillsets and ensure the business is appropriately resourced​

Ensure decision making is supported by appropriate data and qualitative assessment

Maintain reporting, including all financial reporting, of a high quality and submit all reports in a timely, accurate and complete manner to Lloyd’s and to applicable regulators

Useful information

Below are some of the frequently asked questions about this Principle, including the questions that were asked in the Technical Briefing session(s).

If you have any further questions, please reach out to Oversight.Framework@lloyds.com

Syndicates’ ratings are only available internally at Lloyd’s – they are not shared externally.

In the claims principle, one of the sub-principles calls out delegated authority, and the way that materiality metric works is that there’s a small group of managing agents which have separate metrics – this is pointed out in your oversight letter, if it applies. This also applies to customer outcomes.

There is quite a lot of debate about the phraseology but we also mean ‘first’ line.