Lloyd’s managing agent authorisation process to be streamlined to support growth

News release

The Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA) and the Society of Lloyd’s (‘Lloyd’s’) have agreed changes to streamline the process of regulatory approval for Lloyd’s managing agents, intended to reduce the timeframe for authorisation. 

Under the changes, 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 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.”

Sheree Howard, Executive Director, Authorisations, FCA said: “We are committed to being a smarter regulator, supporting growth and reducing unnecessary burdens on firms whilst maintaining our high standards. Our collective work between the PRA, FCA and Lloyd’s to co-ordinate assessments will help ensure that London’s world-leading international insurance market continues to thrive.”

Caroline Sandeman-Allen, Lloyd’s Chief of Market Oversight said: “The Lloyd’s market is the preeminent hub for global risk, showcasing the best specialist insurance solutions to solve major and complex issues. It’s therefore hugely important that we remove barriers to entry wherever possible, while of course maintaining our stringent high expectations. Today’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.’’

Notes to editors

1. The authorisation of managing agents to operate in the Lloyd’s market requires authorisation decisions by the PRA, FCA and the Society of Lloyd’s. In 2024, a pilot exercise was initiated to explore how processes could be improved for all parties while maintaining existing standards. This has completed successfully, resulting in a streamlined approach.
2. If applicants provide a high-quality application – and are motivated and capable to move at pace - then the combined authorisation process could be completed in around 6 months, significantly quicker than the previous 12-18 months.
3. Further details on the changes to entry processes will be communicated to prospective new entrants via the usual channels.