Finance teams in the Lloyd’s market face a more demanding regulatory and oversight environment than many firms in the wider UK insurance sector. Managing agents operate under PRA prudential regulation, FCA conduct regulation and Lloyd’s own Performance Management and Market Oversight framework.
Lloyd’s oversight is now more focused on the quality of data, delegated authority governance, expense management, operational resilience and performance oversight, rather than financial reporting alone.
The role of finance teams is becoming broader, with greater expectation that they produce accurate reporting, support regulatory submissions and provide management information that explains performance, cost, capital use and emerging risks. When data is incomplete, delayed or difficult to reconcile, the impact can be felt across underwriting, actuarial, risk, compliance and governance.
Over the next few years, finance leaders in the Lloyd’s market are likely to face greater pressure to provide trusted, timely and detailed financial and operational information, particularly in organisations that depend on data from multiple systems, third parties and reporting processes.
Lloyd’s oversight is becoming more data-driven
Lloyd’s market oversight has become increasingly focused on sustainable performance and the quality of information used to assess it. The 2026 Market Oversight Plan places continued emphasis on underwriting discipline, delegated business, expense management and the data used to monitor performance across the market.
Finance functions need to go beyond producing the required numbers; they must be able to explain why performance is changing, whether expense ratios are sustainable, how acquisition costs are affecting profitability and whether capital is being used efficiently.
This requires reliable management information across underwriting performance, claims development, reserving, expenses, capital utilisation and data quality. If these areas are reported separately, or if the data cannot be reconciled easily, it becomes harder to give boards and oversight teams a clear view of performance.
The direction of travel is clear: finance teams are expected to support a more active form of oversight, where numbers are used to challenge performance, evidence governance and identify areas requiring further action.
Expense management is becoming a strategic focus
Historically, much of the market discussion has centred on underwriting performance and combined ratios. Still, Lloyd’s is now placing greater focus on whether managing agents have sustainable expense bases and clear visibility of cost.
For finance teams, this creates pressure to provide more detailed information about how expenses are allocated, where costs are increasing and whether investment is delivering measurable value. Acquisition costs, outsourced service costs, technology spend and distribution expenses may all need to be understood in more detail, particularly where they affect profitability by class, binder or distribution channel.
As such, a more sophisticated approach to expense analytics is required: finance teams may need to move beyond high-level cost reporting and develop clearer allocation methodologies, stronger profitability reporting and better links between financial data and underwriting performance.
If expense data is inconsistent or difficult to reconcile, managing agents may find it harder to evidence sustainable profitability or explain the true cost of writing business through different channels. Over time, expense analytics is likely to become a more important capability for finance leaders in the Lloyd’s market, rather than a reporting exercise completed after performance has already been assessed.
Delegated authority is the biggest data and control challenge
Delegated authority is one of the most significant areas of focus in the Lloyd’s market. Around 45% of Lloyd’s market premium is written through delegated authority arrangements, making it a major part of market performance and one of the more complex areas to oversee.
The challenge here comes from the number of parties and data flows involved. Risk, premium, claims, commission and settlement information may be provided through coverholders, MGAs, brokers, service companies and delegated claims administrators. When this information is incomplete, delayed or inconsistent, accounting, reporting, cash matching, profitability analysis and management information can all be affected.
Central to this, bordereaux quality is key in confirming premium completeness, reconciling cash, monitoring claims development, reviewing delegated commissions and understanding binder profitability. Poor-quality bordereaux may also affect actuarial work, regulatory reporting, and technical accounting, particularly where multiple sources need to be reconciled before numbers can be used with confidence.
Lloyd’s has continued to increase its focus on delegated business oversight. As its 2026 Market Oversight Plan confirms, delegated business remains a priority area and managing agents will be assigned dedicated Delegated Authority Oversight Managers, placing greater pressure on managing agents to evidence how delegated authority business is governed across its full lifecycle.
Standardised bordereaux, automated validation, improved reconciliation and clearer data standards can reduce manual work and improve the reliability of information used for reporting, accounting and settlement. The Delegated Data Manager is key to this approach, supporting the standardised collection and validation of delegated authority data across the market.
Finance is now closer to governance and risk
Lloyd’s Principles for Doing Business assess managing agents against broader expectations around governance, risk management, customer outcomes, operational resilience and financial performance.
As a result, finance teams need to evidence how figures have been produced, reviewed and used in decision-making, creating greater need for effective controls, audit trails and documented decisions. Finance data should be clear enough to support board reporting, regulatory returns, delegated authority oversight and performance management. Where figures cannot be traced back to source, or where different teams are relying on different versions of the same information, firms may find it harder to evidence strong governance.
Consumer Duty also increases the need for better information across delegated distribution chains. Many Lloyd’s businesses distribute through coverholders, MGAs, brokers and service companies, which can make it more difficult to assess fair value, commission structures, product profitability and customer outcomes. Finance teams may need to support this analysis with more detailed data on costs, income and profitability across different products and channels.
Operational resilience is also relevant for finance leaders. Finance close, regulatory reporting, Lloyd’s returns, delegated authority reporting, cash settlement and outsourced finance processes can all affect the firm’s ability to operate effectively. Managing agents therefore need to understand where these processes depend on third parties, manual workarounds or systems that may disrupt if they fail.
As finance becomes more closely connected to governance and resilience, data quality becomes a wider control issue. The information produced by finance needs to be accurate, timely and supported by processes that can stand up to internal and external scrutiny.
Technology and AI need stronger controls
Technology is becoming increasingly important in Lloyd’s oversight, particularly where firms are using automated controls, validation tools and reporting systems to improve data quality. Lloyd’s delegated underwriting guidance refers to technology-enabled monitoring, automated controls and near real-time data as important tools for effective oversight.
This creates both an opportunity and a control challenge: automation can improve reconciliations, bordereaux validation, reporting and management information, but only where the underlying data, process ownership and control framework are strong enough to support it.
As firms explore AI-assisted reconciliations, journal preparation, forecasting, management reporting and document review, finance leaders will need clear governance over how these tools are used. Outputs should remain explainable, reviewable and supported by appropriate human oversight.
As such, the use of technology should strengthen financial control rather than create new uncertainty. This means version control, audit trails, ownership of automated processes and clear evidence of review will become increasingly important as finance functions look for ways to improve speed, accuracy and oversight.
What Lloyd’s finance leaders need to strengthen
For finance leaders in the Lloyd’s market, the next stage is likely to require stronger capability across data, controls, reporting and performance analysis. The finance function will need to work more closely with actuarial, risk, compliance, underwriting and operations, particularly where the same information is being used for regulatory returns, performance oversight, and board reporting.
Delegated authority data governance is one of the most important areas. Managing agents need better visibility of bordereaux quality, premium completeness, claims reporting, delegated commissions, cash matching and binder profitability. Without this, finance teams may continue to rely on manual corrections and late-stage reconciliations to produce information that should be available earlier. Finance leaders should prioritise this capability now to improve oversight and reduce reliance on manual correction.
Finance and actuarial teams will also need greater alignment. IFRS 17, Solvency UK, reserving, capital management and performance reporting all rely on consistent data, agreed assumptions and clear review processes. Where finance and actuarial outputs are not aligned, reporting becomes slower and senior leaders may receive information with more caveats than expected.
Expense analytics is another priority. As Lloyd’s places greater focus on sustainable profitability, clearer reporting on acquisition costs, outsourced costs, technology investment, and profitability by class, binder, and distribution channel is key.
The same applies to reporting automation, audit trails and AI governance. Automation can improve speed and reduce manual work, but only where the controls around data, review and ownership are strong enough. Finance leaders will need systems and processes that support faster reporting without weakening accountability.
How Brighter Consultancy can help
We work with insurers, managing agents and wider London Market firms to improve finance, governance, risk and compliance capabilities. Our work spans finance transformation, actuarial support, delegated authority, reporting improvement, regulatory change and operating model design.
Our consultants work alongside client teams to develop practical and proportionate solutions. This may include improving delegated authority data governance, strengthening reporting processes, aligning finance and actuarial outputs, improving expense analytics, or building better evidence around controls, audit trails, and decision-making.
As Lloyd’s oversight continues to develop, finance teams will need to provide information that is accurate, timely and detailed enough to support regulatory expectations and commercial decision-making. Brighter Consultancy can support firms in building the capability, structure and confidence needed to meet those demands.
Speak to us about strengthening your finance, governance and reporting capabilities in the Lloyd’s market.
