A New Approach To Third Party Oversight
Details of the new framework for third party oversight being introduced by Lloyd's
Lloyd's is making significant changes to its framework for third party oversight. The new oversight framework forms part of Lloyd’s vision for delegated authorities: to create a seamless and well-managed ecosystem that enhances customer experience, making it easier, faster, and more cost-effective to do delegated authority business.
To support the changes, Lloyd’s is also continuing to develop a new integrated, online compliance system, known as Delegated Oversight Manager, which will replace the current ATLAS system.
The key changes we are making to our oversight framework 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. Detailed guidance on the approval process will be published shortly.
- 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 will be 30 September 2020.
If you have any questions about our consultation or would like more information, please contact: firstname.lastname@example.org.