LLD 16.4 Summary of application of PRU to Lloyd's
Key PRU requirements for Lloyd's
Key PRU requirements |
||
Risk management, systems and controls |
||
The Society to establish and maintain systems and controls to address risks affecting the Lloyd's market |
||
The Society to establish and maintain systems and controls for the management of prudential, credit, market, liquidity and operational risks affecting funds at Lloyd's and central assets |
||
Managing agents to establish and maintain systems and controls for the management of prudential, credit, market, liquidity, operational, and insurance risks affecting each syndicate |
LLD 17.4, LLD 18.4, LLD 20.2, LLD 21.2, LLD 22.2, LLD 23.2 & LLD 24.2 |
|
Adequacy of financial resources |
||
The Society to ensure that members' financial resources are adequate |
||
Members taken together to maintain adequate financial resources in respect of the insurance business conducted at Lloyd's |
||
Managing agents to ensure that financial resources are adequate for each syndicate |
||
Valuation |
||
The Society and managing agents to apply generally accepted accounting principles to valuing assets, liabilities, equity and income statement items for the purposes of the rules and guidance in LLD and PRU unless the contrary is expressly stated |
||
Capital resources requirements |
||
The Society to calculate the MCR in respect of the general insurance business of each member |
||
The Society to calculate the CRR (higher of MCR and ECR) in respect of the long-term insurance business of each member |
||
Capital resources |
||
The Society and managing agents to calculate capital resources in accordance with the rules and guidance in LLD and PRU |
||
Adequacy of capital resources |
||
Managing agents to assess the adequacy of capital resources held at syndicate level in respect of insurance business carried on through each syndicate (annual ICA for each syndicate) |
||
The Society to assess the adequacy of capital resources available to support each member's insurance business (ICA for each member), both at syndicate level (taking account of syndicate ICAs), and as funds at Lloyd's |