control framework a warm welcome to the december market breakfast group

Control Framework

A warm Welcome to

the Decembermarket Breakfast

Group

Control Framework

Breakfast Group agenda

9:00 Festive arrival, breakfast & networking All

9:20 Christmas welcome Ali Dove

9:25 Lloyd’s International Trading Advice Giles Taylor(LITA) Developments

9:40 Phase II update and a round-up of the year’s Jaana Rouvariachievements

For something a little different….

10:00 Lloyd’s in Social Media Lucy Dawson & Kassy Dignam

10:15 Q & A All

10:30 Close Ali Dove

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Lloyd’s International Trading Advice (LITA) DevelopmentsGiles Taylor, Senior Manager, LITA

11 December 2013

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Crystal

Approximately 40-45,000 reports are run on Crystal per month.

Approximately 12,000 reports are run per month whilst the user is signed into Crystal (accessing the secure content).

Around 30,000 of these reports are run by users who have not signed into Crystal (and are therefore accessing limited content only).

Source: Crystal Usage Stats, Dec 2013

Nov-1

2

Dec-1

2

Jan-

13

Feb-

13

Mar

-13

Apr-1

3

May

-13

Jun-

13

Jul-1

3

Aug-1

3

Sep-1

3

Oct-13

0

10,000

20,000

30,000

40,000

50,000

Reports run (past 12 months)

Registered Users

Non registered & registered

Nu

mb

er o

f re

po

rts

run

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6

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10

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So don’t get stuck…

12

…Log IN!

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Consumer lines business: Market conduct risk

Aim: Assess the need for -

– expanded market advice on consumer business

– more information on conduct requirements

Main actions:

– Analysis of existing Crystal content (200+ country reports)

– Consultation with Market and Lloyd’s International Network

– Recommendations for further Crystal content

– Consider new conduct risk controls for consumer business

– Consult new content on intermediary licensing requirements

Consultation group:

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Amlin Catlin Kiln

Beazley Hiscox Liberty

Brit Jubilee Sagicor

LMA Regulatory Committee Sportscover

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Priorities identified

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)

Jurisdictions

Australia

Canada*

France

Germany

Italy

New Zealand

South Africa

Spain

US**

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* At provincial level, Alberta, British Columbia, Manitoba, Ontario, Quebec, Saskatchewan

** At state level, California, Florida, Illinois, Louisiana, Maryland, New Jersey, New York, North Carolina, South Carolina, Texas

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Consumer Lines: Next steps

► ‘Core’ information - direct licence jurisdictions (e.g. definition of consumer, complaints procedures)

– By end Q4 2013

► Full consumer information - key countries

– Pre-contractual notification, insurance documents, mandatory/prohibited contract terms, cancellation/renewal, claims handling

– By end Feb 2014: Australia, New Zealand, Italy, Spain

– By end April 2014: Canada, South Africa, France, Germany

► Full consumer information - key US states

– Timescale tbc: California, Florida, Illinois, Louisiana, Maryland, New Jersey, New York, North Carolina, South Carolina, Texas

– Work currently out to tender

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Further developments

► Global coverage content for Crystal:

– What Lloyd’s can do has a competitive advantage!

– Expand information on fronting in unlicensed countries

– Guidance on what Lloyd’s can/can’t cover

► Timescale:

– Provisionally Q1/2 2014

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► Intermediary licensing content:

– Gap analysis completed

► Developing proposal for consultation with LIIBA, LMA

– Open market intermediation

– Coverholder licensing

– Scope of information, priority countries (e.g. V25, US)

► Timescale:

– Q1 2014

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?ANY Questions?

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Control framework Phase II

Jaana Rouvari

18

Control Framework

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1. Year’s round up

2. How is the market progressing

3. Key challenges

4. Activities for the next month and new stuff

19

Control Framework

Today…

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Control Framework

Achievements to date..

Bought 530 bacon sarnies

99 Meetings with Managing agents

152 meetings with brokers

LIIBAPAGReg ComIACDUMBOLTMPG

Service providers for…

Software

Back office processing

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Market Progress

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Control Framework

21

August 2013

September 2013

October 2013

November 2013

December 2013

Initial meetings with managing agents

Managing agent has project resources in place

Coverholder risk rating exercise

Risk ratings reflected in audit schedules

% C

ompl

etio

n 100% Complete

40% complete

30% Complete

Confirm delivery timeline to Lloyd’s

100% Complete

30% Complete

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Key Challenges

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Control Framework

Workshop with managing agents and brokers where…

We all got to know each other a little better

Duplication

1. Lead vs. follow

2. Many managing agents to one broker

3. Many brokers/ managing agents to one coverholder

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The brief

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Control Framework

1. Understand level of involvement from brokers

2. Discuss what evidence of controls operated by brokers does the managing agent need?

3. What evidence can be provided by the broker?

The outcome

1. Improved our understanding of the broker’s role

2. Came up with some suggestions for methods of sharing information

3. Captured some additional improvement suggestions

next steps

• Engage with LIIBA

• Run an identical workshop in January with a different mix to validate our understanding

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In the next month

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Control Framework

• Lloyd’s to consolidate and review completed coverholder risk ratings

• Lloyd’s to commence engagement with managing agent review groups to agree engagement and communications with brokers

• Lloyd’s to review the deadline

• Managing agents to commence1. Risk assessment2. Gap analysis 3. Remediation workUnderpinned by the coverholder audits

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New stuff

25

Control Framework

• Lineage and Control Framework gap analysis complete - no gaps

• Phase II Board sign-off wording to be reviewed

• Feedback on the Control Framework audit questions considered

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Questions?

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Control Framework

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Lloyd’s and Social MediaKassy Dignam & Lucy Dawson

Digital Communications Managers11 December 2013

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A social solution?

Brand personality & transparency

International reach in real-time

Influence, educate and spark debate

Relationship building

Listening & leveraging insights

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Protect the brand

Buy-in from board

Work with legal and risk management

Educate the business - guidance &

policy

Build in time to monitor,

respond & reportFollow the

audience not the platform

© Lloyd’s

Thank you, Any questions?

@lloydsoflondon

www.facebook.com/lloyds

www.linkedin.com/company/lloyd's-of-london

www.youtube.com/user/Lloydsinsurance

[email protected]

[email protected]

© Lloyd’s 38

Control Framework

Further information on Control Framework – [email protected]

Next Breakfast Meeting – 21st January 2014

www.lloyds.com/controlframework

mailto:[email protected]

http://www.lloyds.com/controlframework

control framework a warm welcome to the december market breakfast group

Documents