The survey, which is based on responses from 28 Managing Agents representing approximately 50% of the Lloyd’s market, indicates that, overall, Lloyd’s Managing Agents expect this situation to continue to deteriorate in 2018.
However on a more positive note, a majority of respondents believe that the introduction of the Lloyd’s Market Coverholder Audit Scope (LMCAS) has improved the quality of audits of coverholders by managing agents and expect this to continue on an upward trajectory.
Key findings include:
- More Lloyd’s Managing Agents are reporting on a ‘quarterly basis’ not just ‘annually’ or ‘never’, which is an encouraging trend;
- 76% of respondents said that they insist on conducting DA audits using the Lloyd’s Market Audit Scope template – a big endorsement for Lloyd’s;
- 83% of respondents believe the new audit scope will improve the quality of reviews; and
- 86% of respondents do not believe ATLAS is reliable or up to date. However 79% of those surveyed will be using AiMS for third party administration (TPA) instructions in the future.
Michael Campbell, Delegated Authority Director, UK at Mazars said: “This year’s survey, our fifth, has produced some very interesting insights, both positive and potentially worrying for the sector. Some of these can be identified as on-going trends, while some results have been influenced by a broadening of the scope of the survey to focus even more heavily on conduct risk culture within coverholders and consumer outcomes, including anti – bribery, corruption and money laundering cover.
”With a significant majority (73%) of respondents generating between 25% and 50% of their revenues from delegated authority underwriting, it is clear that these are areas of critical importance to the sector.”
Notes to editors
Mazars UK financial services group has demonstrable market presence with 21 dedicated partners, supported by over 300 professionals.
- Our asset management team’s experience comes from working with over 1,000 funds across the UK and Europe.
- We are the fifth largest auditor of banks in the UK and provide assurance and advisory services to a range of central, retail and investment banks.
- We have a 100 year history in the insurance market and today we advise over 50 UK insurance companies, reinsurers and mutuals; 70% of the Top 10 insurers and subsidiaries; 24% of the Top 50 UK brokers; and 60% of Lloyd’s syndicates.