UK regulators move to streamline Lloyd’s managing agent approvals

By Ryan Hewlett

July 8 - (The Insurer) - UK regulators and Lloyd’s of London said on Monday that they had agreed on changes to accelerate the approval process for Lloyd’s managing agents.

The Prudential Regulation Authority, Financial Conduct Authority and Society of Lloyd’s said the combined authorisation process could be completed in around six months in instances where applicants provide high-quality applications, are motivated and able to move at pace. The approval process typically takes 12 to 18 months under the existing rules.

Under the updated rules, the PRA and FCA will retain their statutory decision-making roles but will make increased use of the assessment work already carried out by Lloyd’s.

“This will make decision-making more concurrent, shortening the process, while maintaining high standards of entry,” the bodies said.

Caroline Sandeman-Allen, Lloyd’s chief of market oversight, said it remained “hugely important” that the Corporation works to remove barriers to entry wherever possible, while maintaining high expectations.

“(Monday’s) announcement is a great example of what’s possible with close collaboration with our regulators and I look forward to the benefits for our market, and industry as a whole. The Lloyd’s market is of integral importance to the UK economy, and plays a major role in sustaining our world-leading commercial insurance sector,” she said.

The changes form part of a wider programme of enhanced collaboration between the three organisations to improve effectiveness, efficiency and reduce duplication in oversight of the Lloyd’s market.

Following a successful pilot in 2024 in the Lloyd’s market, the new approach will deliver a quicker and clearer process for applicants, helping support the development of the Lloyd's and London market.

It also advances the PRA’s and FCA’s secondary competitiveness and growth objectives by improving the efficiency of regulatory processes and helping to attract insurance businesses to operate in the UK.

Gareth Truran, executive director, insurance supervision at the PRA, said: ‘‘We’ve worked closely with the FCA and Lloyd’s to see how we can streamline our own processes and make as much use as possible of the review work that Lloyd’s undertakes. The new approach will improve efficiency while maintaining high quality outcomes in the Lloyd’s market, and is aligned with our secondary objectives for competition, competitiveness and growth.”