INSPRU 8.1 Application
1INSPRU 8.1 applies to:
- (1)
the Society;
- (2)
If a provision in INSPRU or GENPRU applies to the Society "in accordance with" this rule, the Society must:
- (1)
manage each member's funds at Lloyd's;
- (2)
manage its central assets; and
- (3)
supervise the insurance business carried on by each member at Lloyd's;
so as to achieve in relation to those assets and that insurance business the same effect as the relevant INSPRU or GENPRU provision would have (that is, conforming with the requirements of any rule and taking appropriate account of any applicable guidance,) when applied to a firm or to the insurance business of a firm.
The Society is subject to INSPRU and GENPRU rules in respect of the insurance business of each Lloyd's member. These include rules in respect of:
- (1)
the calculation of the capital resources requirements for each member;
- (2)
the financial resources it manages on behalf of members; and
- (3)
the Society's own financial resources.
If a provision in INSPRU or GENPRU applies to a managing agents "in accordance with" this rule, the managing agent must, in relation to each syndicate managed by it and for each syndicate year, manage:
- (1)
the syndicate assets; and
- (2)
the insurance business carried on by the members of the syndicate through that syndicate;
so as to achieve in relation to those assets and that insurance business the same effect as the relevant INSPRU or GENPRU provision would have (that is, conforming with the requirements of any rule and taking appropriate account of any applicable guidance) when applied to a firm or to the insurance business of a firm.
Syndicate membership may change from year to year or it may remain constant. Managing agents are required to apply INSPRU and GENPRU to the insurance business carried on through each syndicate for each syndicate year. This should ensure that INSPRU and GENPRU are applied to Lloyd's in a way that is consistent with the provision of capital to support the insurance business underwritten.