Part

LLD Lloyd's

Chapter

Application of PRU 4 to Lloyd's

Printed on: 05/07/2024

Rulebook at: 01/04/2005

LLD 21

Application of PRU 4 to Lloyd's

LLD 21.1

Section 150 of the Act (Actions for damages)

  • 01/01/2005

LLD 21.1.1

handbook-rule
A contravention of the rules in this chapter does not give rise to a right of action by a private person under section 150 of the Act (Actions for damages) and each of those rules is specified under section 150(2) of the Act as a provision giving rise to no such right of action.
  • 01/01/2005

LLD 21.2

Market risk management systems and controls

  • 01/01/2005

Application of PRU 4.1

LLD 21.2.1

handbook-rule
PRU 4.1 applies to managing agents and to the Society in accordance with:
(1) for managing agents, LLD 16.3.3 R; and
(2) for the Society, LLD 16.3.1 R.
  • 01/01/2005

LLD 21.2.2

handbook-rule
In accordance with LLD 18.4.2 R, the rules and guidance in PRU 4.1 relating to the establishment and maintenance of a business plan do not apply to the Society.
  • 01/01/2005

LLD 21.3

Market risk in insurance

  • 01/01/2005

Application of PRU 4.2

LLD 21.3.1

handbook-rule
PRU 4.2 applies to managing agents and to the Society in accordance with:
(1) for managing agents, LLD 16.3.3 R, subject to LLD 21.3.4 R below; and
(2) for the Society, LLD 16.3.1 R.
  • 01/01/2005

Resilience capital requirement (applicable to long-term business only)

LLD 21.3.2

handbook-rule
Managing agents must calculate the amount of the resilience capital requirement for the long-term insurance business carried on through the syndicates they manage.
  • 01/01/2005

LLD 21.3.3

handbook-rule
The Society must determine the resilience capital requirement for the insurance business of each member under PRU 4.2.10 R as the member's proportionate share of the resilience capital requirement calculated by the managing agent for the long-term insurance business carried on through the syndicate.
  • 01/01/2005

Currency risk: matching of assets and liabilities

LLD 21.3.4

handbook-rule
For the purposes of PRU 4.2.53 R, a managing agent must ensure that:
(1) syndicate liabilities are covered by matching syndicate assets as required by PRU 4.2.53 R; or that
(2) it immediately notifies to the Society the nature and extent of any syndicate liabilities not covered by matching assets under (1).
  • 01/01/2005

LLD 21.3.5

handbook-guidance
Notwithstanding the terms of PRU 4.2.53 R, a managing agent may comply with PRU 4.2.53 R by notifying unmatched currency liabilities to the Society.
  • 01/01/2005

LLD 21.3.6

handbook-rule
On receipt of a notification by a managing agent under LLD 21.3.4 R (2), the Society must ensure that the liabilities in respect of the insurance business of the members in aggregate are covered with matching assets complying with PRU 4.2.53 R.
  • 01/01/2005

LLD 21.3.7

handbook-guidance
The Society should consider the need to cover the unmatched currency liabilities notified under LLD 21.3.4 R (2) with assets in the same currency held as funds at Lloyd's for any relevant member or, if necessary, with central assets meeting the currency matching requirements.
  • 01/01/2005

LLD 21.4

Derivatives in insurance

  • 01/01/2005

Application of PRU 4.3

LLD 21.4.1

handbook-rule
PRU 4.3 applies to managing agents and to the Society in accordance with:
(1) for managing agents, LLD 16.3.3 R; and
(2) for the Society, LLD 16.3.1 R.
  • 01/01/2005