1. A clear framework within which all Managing Agents are expected to operate
- One set of standards covering all requirements
- Clarity on regulatory vs Lloyd’s requirements vs guidance / best practice 
- Inclusion of Solvency II and alignment to regulatory requirements
- Consistency in interpretation, presentation and publication

2. A clear control framework for Lloyd’s which demonstrates robust oversight of the market 
- Clear view of an agent against all requirements at any point in time 
- Clear linkage between decision making forums and view on an agent 
- Transparency in review processes and outcomes with agents
- Evidence to Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA)

 

Supporting information

  • Lloyd's Minimum Standards Refresh

    In order to ensure a clear framework is established, a refresh of Lloyd’s minimum standards is required to incorporate Solvency II requirements, bring all standards up-to-date and to make the presentation of standards more consistent and user friendly for the market.

    Work is already underway to progress this in conjunction with the newly formed Lloyd's Market Association (LMA) Risk Assurance Committee. Lloyd’s will issues all re-drafted standards for full market consultation allowing agents to provide feedback, and challenge before sign off.

     

  • Standards Assurance Group

    There are two key internal decision-making bodies which will support this framework: firstly the Capital and Planning Group (CPG), which makes decisions on business plans and capital, and secondly the newly formed Standards Assurance Group (SAG).
     
    The SAG has been operational since the 1 July 2013 and will work alongside CPG. Its key responsibilities are;

    • the assessment of Managing Agent compliance with Lloyd’s Standards
    • ensuring sufficient review activity is conducted by the Corporation to determine and evidence the Corporation's view of each Agent's compliance with Lloyd's Standards
    • the on-going assessment and authorisation of Solvency II Internal Models

    The SAG will be supported by the Risk Assurance Function which will work closely with technical teams to ensure Lloyd’s has a co-ordinated view of each agent’s compliance with Lloyd’s standards.