This guidance is aimed at managing agents operating coverholder relationships and other delegated authorities. The guidance also applies to coverholders as well as delegated claims administrators and for the ease of reading a general term of delegated authorities will be used except for where a specific reference is needed for one of these parties.
For the purposes of this guidance, financial crime includes money laundering (including terrorist and proliferation financing), bribery and corruption, failure to adhere to international sanctions regimes, facilitation of tax evasion, fraud and market abuse.
It is important that entities with delegated authority understand the financial crime risks facing the insurance industry and the associated regulatory and legislative requirements applicable to both their business and that of the managing agents on whose behalf they are underwriting or administering business, as well as the expectations required by managing agents to mitigate those risks.
Likewise managing agents should be aware of Lloyd’s expectations to manage financial crime risk in the context of delegated authorities. Therefore, Lloyd’s requires managing agents and delegated authorities to implement proportionate systems and controls to manage the risk of financial crime within their business.