Lloyd's of London recently published a set of minimum standards, scheduled to take effect Jan. 1, 2015, for the companies that manage the syndicates of members that write insurance for the Lloyd’s market
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“Since the beginning of 2013, Lloyd's has been working closely with the Lloyd's Market Association (LMA) and the market to undertake a refresh of all Lloyd's minimum standards,” states Lloyd's . “The overall objective of the refresh project has been to develop a clear and complete framework within which all managing agents are expected to operate, provide consistency in interpretation, presentation and publication of all standards and ensure that Lloyd's minimum standards align clearly with the requirements of Solvency II.”
One reason for the new minimum standards for managing agents is to ensure they comply with Solvency II, a European Union directive that stipulates capital requirements and risk management standards for European insurers, scheduled to take effect Jan. 1, 2016.
The minimum standards for Lloyd’s managing agents can be seen by clicking here:
http://www.lloyds.com/the-market/operating-at-lloyds/lloyds-minimum-standards
The original Lloyd's minimum standards were developed around 2005 and covered fundamental elements such as underwriting, governance and risk management. A statement from Lloyd’s points out that “over time, additional minimum standards have been developed to support broader activity.”
In the Lloyd's market, managing agents are companies that “manage one or more syndicates on behalf of the members who provide the capital,” according to its annual report for 2013, with managing agents having responsibility for employing underwriters, overseeing their underwriting and managing the infrastructure and day-to-day operations.
As of Dec. 31, of last year, there were 56 managing agents and 91 active syndicate in the Lloyd's market.
In 2013, 43 per cent of the Lloyd's market business was from Canada and the United States.
