Embed Size (px)
Citation preview
Control Framework
A warm Welcome to
the September market Breakfast
Group
Control Framework
Breakfast Group agenda9:00 Arrival, breakfast & networking All 9:20 Welcome Ali Dove 9:25 Lloyd’s Delegated Authorities Lindsey Davies
• Audit scope changes• Audit coordination pilot• Atlas
9:40 Phase II progress & Responsibilities Jaana Rouvari of lead vs. follow
9:55 Broker conference update John Hibbert
10:05 Integro – A broker’s view into the Dan LottControl Framework
10:20 Q & A All 10:30 Close Ali Dove
© Lloyd’s
Lindsey DaviesLloyd’s delegated authorities
3
Control Framework
• Audit scope changes
• Audit coordination pilot
• Atlas
© Lloyd’s
Progress on Phase 2
4
Control Framework
August 2013
September 2013
October 2013
November 2013
December 2013
Initial meetings with managing agents
Managing agent has project resources in place
Coverholder risk rating exercise
Risk ratings reflected in audit schedules
Confirm delivery timeline to Lloyd’s
© Lloyd’s
Lead vs. follow
5
Control Framework
You said…
The lead should…• Include Control Framework audit questions in the audit scope• Carry out the audit and share findings with follow• Coordinate communications with broker and coverholder
Where you follow…• You have limited power to influence• Rely on the broker to provide you with information (distribution
of bordereau, audit reports, etc)• Controls available are limited, confidence in your lead is key
© Lloyd’s
Lloyd’s listened
6
Control Framework
The lead managing agent takes the responsibility for the Control Framework
This includes:• Risk rating exercise• Performing a gap analysis • Assessing sufficiency of controls • Remediation• Organising coverholder audits• Communications with the broker or coverholder
What about conflict of interest between the lead and the follow?
© Lloyd’s
Broker conference
17th September 2013
7
Control Framework
53 Broking organisations registered out of 115 individual firms who operate in the binder space.
That represented 87% of the £4.2 billion GWP on a calendar year basis for 2012
Actual attendees on the day represented 70% of the 2012 GWP and they were joined by LIIBA
31 out of the top 40 BROKERS by GWP
© Lloyd’s
What was the feedback from the day
8
Control Framework
What if two MAs risk rate a C/H differently? Red vs Green
Have the specific CFII audit questions been issued?
Relative to LLOYD’S 2025 vision. How fluid and/or flexible is the framework ?
Very appreciative of the early engagement by LLOYD’S
Will there be a reach out to all brokers?
© Lloyd’s
Integro – Dan Lott
Brokers’ view into the Control Framework
9
© Lloyd’s
Lloyd’s Control Framework
The Control Framework is a positive step in the right direction for Brokers and for Coverholders…
10
© Lloyd’s
What is our role?
It is the Managing Agent’s responsibility to comply with the Control Framework but, as Lloyd’s Brokers, we have an important role to play:
Communication
Co-ordination
Pace-making
11
© Lloyd’s
What do we need to do?
12
Understand the Control Framework - Phase II FAQs; Website
Be prepared:
Are you a Coverholder?
Do the right people in your organisation know about the CF?!
As a Lloyd’s Broker, what (if any) processes do you undertake?
e.g. validating data / supplementing data / holding data
Expectation management is key! How will you introduce this to your Coverholders?
Audits are likely to be carried out on many Coverholders
Start the dialogue early. Remember – this is nothing new!
© Lloyd’s
Who can we talk to?
13
In the first instance, talk with your Managing Agent(s)
Mark Knight at LIIBA
The Project Team at Lloyd’s
It’s good to talk!
© Lloyd’s
Q & A
14
Control Framework
© Lloyd’s 15
Control Framework
Close
Further information on Control Framework – [email protected]
Control Framework Phase I end of project celebration – Thursday 26th September
Next Breakfast Meeting – Tuesday 22nd October 2013
www.lloyds.com/controlframework
