In November, Lloyd’s Corporation wrote to the chief executive of each Managing Agent to introduce them to their new Oversight Manager. These individuals will become the Corporation’s single point of contact for each managing agency and the syndicates which they manage. By streamlining its organisational structure to introduce this role – essentially, account managers for each Lloyd’s market business – Lloyd’s has made a change which the market should embrace.
It is a clear shift of approach. Historically, multiple individuals from Lloyd’s have interacted with each agency as its front-line representatives. Each area of supervision, from underwriting to claims, risk management to capital, had different individuals to liaise with. As a result, none had a complete understanding of the whole managing agency’s operations.
This should be remedied by the new system, to the benefit of both Lloyd’s and Managing Agents. Each of the new Oversight Managers should be able to accrue a full and comprehensive knowledge of the business, strategy, and operations of each Lloyd’s managing agency on their roster. Provided that these firms invest sufficient time working with their new Oversight Manager, they will garner a Corporation representative with the informed ability to act on their behalf on all topics. It is a step change.
This new model for oversight brings Lloyd’s more in line with the Prudential Regulation Authority (PRA), which has a lead supervisor for every business it regulates. Like the PRA, Lloyd’s Oversight Managers will bring in subject matter experts as required.
If this new structure works well, managing agencies like Asta will have the advantage of working with a Lloyd’s representative who genuinely understands their business model, and becomes their voice in key discussions. Given their workload, Oversight Managers will require the support of the agencies they work with. It is therefore important for each managing agency to work closely with their new Oversight Manager to bring them up to speed as quickly as possible.
This change will be particularly beneficial for Asta, as the third party managing agent of ten syndicates with different business plans, risk portfolios, and capital profiles. Whilst the activity at some managing agencies may remain fairly constant year on year, Asta’s business changes regularly as new syndicates are launched, existing ones continue to develop and grow and some work towards forming their own managing agency. Having a single, knowledgeable, properly engaged and empowered Lloyd’s Oversight Manager as our single contact point will be invaluable.
The new Oversight Managers have a range of backgrounds within Lloyd’s, including Underwriting Performance, Risk Assurance and Relationship Management. A tremendous amount is being asked of them, and it will be a significant challenge for them to shape this new role whilst broadening their own knowledge. Ultimately however, they will be the best-informed people at Lloyd’s.
This new structure supports Lloyd’s aims to continue to develop a more targeted risk based oversight approach and in our view is a positive for Lloyd’s, for managing agencies and for the market as a whole.
This article was originally published in Insurance Day on 27 November 2017.
Neil Griffiths joined Asta in January 2017 as Head of Regulatory Operations with primary responsibility for Compliance and Regulatory Liaison including management of the Compliance Function.
Neil joined Asta from Lloyd’s where he was Senior Manager in Risk Management and led the Risk Assurance and Risk Management and Governance Oversight teams. Neil also acted as chair of the Standards Assurance Group and was a member of the Conduct Risk Oversight Assurance Group, Lloyd’s Internal Model Change Board, New Entrant Assessment Group and Syndicate Risk Committee.
Prior to joining Lloyd’s, Neil spent 9 years in the Deloitte Financial Services Advisory practice, focusing on Risk Management and Regulatory projects including Basel II, Solvency II, Internal Audit, Control Frameworks and Regulatory Change.
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