Control Framework
A warm Welcome
to
the September
market Breakfast Group
Control Framework
Breakfast Group agenda
9:00
Arrival, breakfast & networking
All
9:20
Welcome
Ali Dove
9:25
Lloyd’s Delegated Authorities
• Audit scope changes
• Audit coordination pilot
• Atlas
Lindsey Davies
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
Control Framework
Dan Lott
10:20
Q&A
All
10:30
Close
Ali Dove
Control Framework
Lindsey Davies
Lloyd’s delegated authorities
• Audit scope changes
• Audit coordination pilot
• Atlas
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Control Framework
Progress on Phase 2
August
September
October
November
December
2013
2013
2013
2013
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
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Control Framework
Lead vs. follow
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
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Control Framework
Lloyd’s listened
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?
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Control Framework
Broker conference
17th September 2013
 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
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Control Framework
What was the feedback from the day
 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?
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Integro – Dan Lott
Brokers’ view into the Control Framework
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Lloyd’s Control Framework
The Control Framework is a positive step in the right
direction for Brokers and for Coverholders…
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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
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What do we need to do?
 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!
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Who can we talk to?
 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!
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Control Framework
Q&A
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Control Framework
Close
Further information on Control Framework – jaana.rouvari@lloyds.com
Control Framework Phase I end of project celebration – Thursday 26th
September
Next Breakfast Meeting – Tuesday 22nd October 2013
www.lloyds.com/controlframework
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