Lloyd’s has revealed its plans for a new risk-based approach to delegated authority oversight and the market has responded positively - although some bumps need ironing out ahead of implementation in the first quarter of 2020, according to an article published today in Insurance Day.
According to the article, concerns have been raised over sub-delegation risks and the threat of a ‘two-tier market’. Commenting on the issue of sub-delegation, BLM head of London Market and reinsurance, Damian Cleary, said: “Another step removed is another step removed from oversight.”
Damian goes on to question whether Lloyd’s is straying from its purpose as a specialist market: “Lloyd’s has always been a great place to write business that you can’t place in the companies market, but now increasingly appears to be making itself another companies market player…”
To read the article in full, please click here (subscription required).