The regulatory approval process for Lloyd’s managing agents is being streamlined to reduce authorisation times, following an agreement between the Prudential Regulation Authority (PRA), the Financial Conduct Authority (FCA), and the Society of Lloyd’s.
Under the changes, the PRA and FCA will reportedly retain their statutory decision-making roles but will make increased use of the assessment work already carried out by Lloyd’s.
“Following a successful pilot in 2024 in the Lloyd’s market, the new approach will deliver a quicker and clearer process for applicants, helping support the development of the Lloyd’s and London Market,” the organisations said in a joint statement.
The changes will reportedly enhance decision-making, shortening the process while maintaining high standards of entry.
The changes reportedly form part of a wider programme of enhanced collaboration between the three organisations to improve effectiveness, efficiency and reduce duplication in oversight of the Lloyd’s market.
Gareth Truran, Executive Director, Insurance Supervision at the PRA, commented, “We’ve worked closely with the FCA and Lloyd’s to see how we can streamline our own processes and make as much use as possible of the review work that Lloyd’s undertakes.
“The new approach will improve efficiency while maintaining high-quality outcomes in the Lloyd’s market, and is aligned with our secondary objectives for competition, competitiveness and growth.”
Sheree Howard, Executive Director, Authorisations, FCA, said, “We are committed to being a smarter regulator, supporting growth and reducing unnecessary burdens on firms whilst maintaining our high standards.
“Our collective work between the PRA, FCA and Lloyd’s to co-ordinate assessments will help ensure that London’s world-leading international insurance market continues to thrive.”
Caroline Sandeman-Allen, Lloyd’s Chief of Market Oversight, added, “The Lloyd’s market is the preeminent hub for global risk, showcasing the best specialist insurance solutions to solve major and complex issues.
“It’s therefore hugely important that we remove barriers to entry wherever possible, while of course maintaining our stringent high expectations. Today’s announcement is a great example of what’s possible with close collaboration with our regulators, and I look forward to the benefits for our market and industry as a whole.
“The Lloyd’s market is of integral importance to the UK economy, and plays a major role in sustaining our world-leading commercial insurance sector.”
