< Picture to go here >
Demystifying Conduct Risk
Gabriella Barker
Lloyd’s Delegated Authorities
© Lloyd’s
1
What is Conduct Risk?
► The risk that a managing agent (or its agents)
will fail to pay due regard to the interests of
Lloyd’s customers or will fail to treat them fairly
at all times.
© Lloyd’s
2
Why is Conduct Risk important?
► To achieve fair outcomes for policyholders.
► Increasingly conduct focussed regulatory
environment.
© Lloyd’s
3
What are the implications for
coverholders?
► Coverholders are agents of Managing Agents.
► A Coverholder’s policyholders are the
Managing Agents’ policyholders.
► Both have a responsibility to ensure fair
outcomes are achieved for those policyholders.
© Lloyd’s
4
What should Coverholders expect?
► Additional conduct focussed questions at
renewal and for new binders.
► Closer oversight from Managing Agents.
► Increased data reporting requirements.
► The above will be proportionate to the product
risk.
© Lloyd’s
5
Why are Managing Agents requiring
this?
► To demonstrate compliance with FCA
requirements and expectations.
► To demonstrate compliance with Lloyd’s
requirements and expectations.
© Lloyd’s
6
What are we seeking to achieve?
► Fair outcomes for all customers.
► A consistent Lloyd’s market approach to
managing conduct risk.
► Greater understanding of our coverholders.
► Improved/increased data to assess conduct
risk.
© Lloyd’s
7
Conclusion
► Focus on achieving fair outcomes for all our
customers.
► Increased regulatory focus on conduct risk
which must be addressed.
► As FCA regulated entities this is the
responsibility of Lloyd’s, Managing Agents and
Coverholders.
© Lloyd’s
8
www.lloyds.com
© Lloyd’s
9