Lloyd's is making significant changes to its framework for third party oversight. The new oversight framework, which is intended to align to the Future at Lloyd's vision, will modernise our current arrangements, support reduced compliance costs, reflect modern distribution methods and allow us to take a more risk-based approach to oversight. 

 

To support the changes, in early 2020 Lloyd's will also be rolling out 'Chorus' a new intergrated, online compliance system, which will replace the current ATLAS and BAR systems. The programme team will work with user firms to aid adoption. 

 

The key changes we are making are: 

  •  A risk-based approach to approving delegated authority applications. 
  • Third party administrators (which we will now refer to as delegated claims administrators (DCAs) will be approved by Lloyd's and subject to Lloyd's ongoing oversight. Existing DCAs, notified to Lloyd's under Lloyd's current requirements, will be 'grandfathered' in as approved firms. 
  • A flexible discretion to allow firms to be given delegated authority without their having to obtain prior Lloyd's approval.
  • A flexible discretion to allow sub-delegation of authority. 

The Council has made the necessary byelaw changes to support the new framework. 

 

The coming into force date of the rule changes in early 2020 will be communicated to the market which will align with the go-live of the new compliance system. 

Changes to Lloyd's requirements

Intermediaries (Delegated Authority) Amendment Byelaw (No. 1 of 2019)

Requirements made under the Intermediaries Byelaw

Market Bulletin - Y5257 A New Approach to Third Party Oversight – Byelaw Changes

Consultation documents

We consulted on the changes we are making earlier this year and received strong support for the proposals. 

‘A New Approach to Third Party Oversight’ – Consultation Document

‘A New Approach to Third Party Oversight’ – Byelaw and related Requirements changes

Consultation - Summary of Responses

 

Additional material

 

Delegated Authority Town Hall Meeting – Market Presentation (22 January 2019)

Brokers - Quick Guide

Coverholders - Quick Guide 

TPAs - Quick Guide

 

Further information

 

If you have any questions about our consultation or would like more information, please contact: Coverholders@lloyds.com.