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  1. Point in time
    2006-11-01

LLD 16.4 Summary of application of PRU to Lloyd's

LLD 16.4.1G

Key PRU requirements for Lloyd's

Key PRU requirements

PRU

LLD

Risk management, systems and controls

The Society to establish and maintain systems and controls to address risks affecting the Lloyd's market

LLD 17.4

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

PRU 1.4, PRU 3.1, PRU 4.1, PRU 5.1 & PRU 6.1

LLD 17.4, LLD 18.4, LLD 20.2, LLD 21.2, LLD 22.2 & LLD 23.2

Managing agents to establish and maintain systems and controls for the management of prudential, credit, market, liquidity, operational, and insurance risks affecting each syndicate

PRU 1.4, PRU 3.1, PRU 4.1, PRU 5.1, PRU 6.1 & PRU 7.1

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

PRU 1.2

LLD 18.2

Members taken together to maintain adequate financial resources in respect of the insurance business conducted at Lloyd's

LLD 18.2

Managing agents to ensure that financial resources are adequate for each syndicate

PRU 1.2

LLD 18.2

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

PRU 1.3. & PRU 4.3

LLD 18.3 & LLD 21.4

Capital resources requirements

The Society to calculate the MCR in respect of the general insurance business of each member

PRU 2.1

LLD 19.2

The Society to calculate the CRR (higher of MCR and ECR) in respect of the long-term insurance business of each member

PRU 2.1

LLD 19.2

Capital resources

The Society and managing agents to calculate capital resources in accordance with the rules and guidance in LLD and PRU

PRU 2.2

LLD 19.3

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)

PRU 2.3

LLD 19.4

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

PRU 2.3

LLD 19.4