All syndicates trading at Lloyd's are required to produce an ICA. As well as being an FCA requirement, syndicate ICAs are used to determine capital levels at Lloyd's and form an integral element of the Society ICA calculation.
The FCA’s requirements for Individual Capital Adequacy Standards (ICAS) for insurers are set out in the General Prudential Sourcebook (GENPRU) and the Prudential Sourcebook for Insurers (INSPRU). These requirements apply directly to managing agents in relation to the syndicates they manage and all syndicates are required to produce an ICA assessing capital requirements to ultimate at the 99.5% confidence level.
The FCA has placed clear responsibilities upon Lloyd’s within the ICAS regime and Lloyd’s must be able to justify the reliance which it places on a syndicate ICA within the capital setting process. All syndicate ICAs are therefore subject to review by Lloyd's.
The '2010 ICA Minimum standards and guidance' sets out the minimum standards which agents must address when producing syndicate ICAs and also explains approaches to assessing capital requirements at the extreme level required for an ICA.
Download 2010 ICA Minimum Standards and Guidance (375KB)