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A warm Welcome to the December market Breakfast Group

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Presentation on theme: "A warm Welcome to the December market Breakfast Group"— Presentation transcript:

1 A warm Welcome to the December market Breakfast Group

2 Breakfast Group agenda
Control Framework Breakfast Group agenda 9:00 Arrival, breakfast & networking All 9:15 Festive welcome! Ali Dove 9:20 Canopius Coverholder Framework  Jane Zonnenberg 9:40 Phase II project update Approach to Phase III Jaana Rouvari 10:00 Trading advice and compliance tools: Christmas update Giles Taylor 10:15 Q & A 10:30 Close

3 Celebrating Success Ark Syndicate Management Ltd
Control Framework Celebrating Success Ark Syndicate Management Ltd Beaufort Underwriting Agency Ltd Marketform Managing Agency Limited R&Q Managing Agency Limited

4 Canopius Coverholder Framework 2014

5 Canopius Coverholder Framework 2014
The Canopius Journey, so far… Where Are We Currently? What’s Next?

6 The Canopius Journey, so far…
Steep learning curve Breaking the project down into bite-sized chunks

7 Bite-Sized Chunks Identify risk factors
Coverholder data iro the risk factors Application of the risk factors Overall rating mechanism for inherent risk Approach for assessing risk Audit results template Bordereaux gap analysis Update DA Audit Policy Design BAU process

8 Risk Factors Number of territories in which the coverholder writes business Principal regional complexity (i.e. business written in Australia, Canada, Greece, Ireland, Italy or USA Multiple classes of business (specifically cargo or bloodstock) Method of introducing business (prior submit, coverholder discretion over pre-determined rates, no coverholder referral) Route of business (direct, via broker, via master coverholder)

9 Overall rating mechanism for inherent risk
Excel spreadsheet High/Medium/Low per risk factor Assign values to H/M/L per risk factor

10 Approach for assessing risk
Audit results template Bordereaux gap analysis Desktop review

11 Audit results template
Lloyd’s 2014 audit scope converted to a template to grade audit reports Converting the results of the audits into an assessed risk rating: New reports received after template introduced Retrospectively applied to reports received earlier in 2014

12 Bordereaux gap analysis
Bordereau template prepared based on data coverholder typically expected to provide Gap analysis performed on each bordereau per BA Simple yes/no answers on whether/not specific data is regularly provided Values assigned to each data field according to significance Total rating applied per binder Desktop review - used for adhoc performance monitoring or where rating is marginal

13 Where Are We Currently? Delegated Authority Audit Policy has been updated Currently embedding the process of ongoing rating of a fluid coverholder population Scoping out Control Framework recording and reporting mechanisms on BDX

14 What’s Next? Review of the audit scope – removing possible duplications, or questions that we (as the Managing Agent) can answer Identification of those cases where brokers are involved in the coverholders’ data Identifying any possible areas of overlap with Conduct Risk questionnaire Test and refine practical application of audit frequency decision process against backdrop of topical regulatory focus

15 Control framework Phase II Project Update Jaana rouvari

16 Today… 2014 round up Market progress Broker questionnaire
Control Framework Today… 2014 round up Market progress Broker questionnaire Lloyd’s support for Control Framework in 2015 Approach to Phase III – Open Market

17 The 2014 Christmas Breakfast Group Quiz
Control Framework The 2014 Christmas Breakfast Group Quiz Q1: What cuts of pork make bacon? (Hint: two answers!) Q2: What is the traditional casing for a pork sausage? Q3: To the nearest 10 – How many bacon and sausage sarnies have we gone through in 2014? Q4: The history of the mince pie can be traced to the 13th century, what were the three key traditional fillings for this original pie? Q5: How many market breakfast meetings have we had in 2014? Q6: To the nearest 10 – How many people in total have attended the market breakfast group meetings? A1: Pork belly & pork loin A2: Intestine A3: 520 A4: Meat, fruit and spices A5: 5 A6: 587

18 Achievements and progress…
Control Framework Achievements and progress… on a more serious note Lloyd’s market support through nearly 300 managing agent and broker meetings Celebrating a few more sign-offs today, with rest progressing well Some delays experienced due to renewals, changes in staff, other regulatory initiatives Managing agent sign-off outlook Q4 2014 30% Q1 2015 50% Q2 2015 80% Q3 2015 90% Q4 2015 100%

19 Broker questionnaire Control Framework
Developed by LMA’s Delegated Authorities Operations Committee Looks to make the processing an intermediary undertakes transparent Acts as a conversation opener between managing agents and those brokers who undertake processing of tax and regulatory information Lloyd’s role is to facilitate the process of requesting and disseminating information Lloyd’s will not take a view on the information provided by brokers

20 Control Framework …to avoid

21 Control Framework Support in 2015
For managing agents yet to sign off Your normal Lloyd’s Delegated Authorities contact For brokers Martin Baker Queries Track progress through 6-monthly review meetings and additional catch ups Communications Queries Broker questionnaire Communications

22 What about Phase III- Open Market?
Control Framework What about Phase III- Open Market? Analysis and market consultation carried out over the past 6 months Control Framework evaluated in light of a number of existing initiatives Consideration given to ongoing market modernisation initiatives changing open market process and controls Everything in the context of taking a pragmatic approach Further mitigation of the Control Framework risks addressed through building robust central services Addressed at the same time as LMG market modernisation initiatives Negates the need for a separate managing agent sign-off

23 Control Framework Breakfast, 9th December Giles Taylor, Lloyd’s
Crystal/RLT update Control Framework Breakfast, 9th December Giles Taylor, Lloyd’s

24 Key items Service standards and usage New content LITA vision & 2015

25 Service standards & usage
The headlines… 12,000 Crystal pages 15,000 Crystal users c. 55,000 Crystal reports pcm Still only 25% of users log in c. 500 RLT reports

26 Service standards & usage

27 Non-US consumer information
Jurisdictions Australia Canada* France Germany Italy New Zealand South Africa Spain Subjects General Definition of ‘consumer’ Consumer protection legislation Insurance documentation Pre-contractual notification and disclosure Insurance documents Processing and servicing of risks Cancellation and non-renewal Tacit renewal Claims handling Definition of ‘complaint’ Complaints handling (internal procedures) Details of ombudsman (external procedures) * At provincial level, Alberta, British Columbia, Manitoba, Ontario, Quebec

28 US consumer information
Consumer complaints Posted: California, Florida, Illinois, Louisiana, Maryland, New Jersey, New York, North Carolina, South Carolina, Texas By y.e. 2014: Connecticut, Delaware, Kentucky, Pennsylvania, USVI 2015: All remaining states Homeowners Cancellation & Non-renewal Posted: California, Connecticut, Delaware, Florida, Georgia, Illinois, Louisiana, Maryland, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas Q1 2015: Massachusetts, Oklahoma, Virginia, Washington, Colorado, Tennessee, Ohio, Alabama, Missouri, Minnesota Claims handling California, Florida, New York, Texas

29 Quick search

30 Intermediary licensing
Completed for licensed territories Drafts prepared for following priority countries, but not ‘live’ Argentina Azerbaijan Brazil Chile China Colombia Czech Republic Ecuador Finland India Remaining unlicensed territories drafted up to ‘U’, but not live Indonesia Malaysia Mexico Nigeria Panama Paraguay Saudi Arabia South Korea Turkey Vietnam

31 LITA vision and 2015 Key topics to address…
Risk Location Guidance – separate from coverholder approvals (Y4125) US Law & Jurisdiction – reaffirm guidance (Y3406) Renewal of online offering Review current robustness of Crystal IT infrastructure Consult with the market Develop business case to overhaul Crystal, Risk Locator LITA offering Expanded provision of advice Regulatory thought leadership Above all, forward looking


33 Control Framework Q & A

34 Control Framework AND THE WINNER IS…

35 Further information on Control Framework

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