Lloyd’s Market Association sets up committee of CROs to promote better risk management

The Lloyd’s Market Association (LMA) has set up a committee of chief risk officers (CROs) to promote efficient operation and technical standards in risk management for Lloyd’s managing agents.

Key objectives of the committee are to examine the evolving regulatory requirements for CROs, consider emerging and long-term risks, champion best practice, and determine and define the skills and knowledge needed to fulfil the CRO role within a Lloyd’s insurance business.

Its formation follows from the growing significance of CROs in the Lloyd’s market. The committee consists of 20 CROs and is chaired by Chaucer’s CEO Penny Shaw, who is supported by deputy chair Andrew Pryde, Beazley’s CRO.

LMA’s director of finance and risk Ken Curtis, who is also on the committee, said: “The founding of this committee has been driven by the market, recognising the increased profile of, and reliance on, the CRO and partly in response to the Prudential Regulation Authority’s decision to make risk management a senior insurance management function under the revised Approved Persons Regime.”

The new committee will meet six times a year and will report directly to the LMA board.