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Supervision > Regulation of Insurers and Lloyd’s > Requirements on Lloyd’s

Regulatory Requirements on Lloyd's

Lloyd's is subject to similar regulatory requirements applicable to other authorized insurers. During any period when a member of Lloyd's is carrying on insurance business in Hong Kong, Lloyd's, a member of Lloyd's and the members of Lloyd's taken together shall comply with the requirements under the special provisions relating to Lloyd's as contained in Part VII of the Insurance Ordinance (Cap. 41) (“IO”),  Insurance (Maintenance of Assets in Hong Kong) Rules (Cap. 41T), Insurance (Submission of Statements, Reports and Information) Rules (Cap. 41S) and Insurance (Lloyd's) Rules (Cap. 41V). The requirements include:

  • capital requirements; 
    Cap. 41V prescribes a dedicated capital regime for Lloyd's. In the determination of prescribed capital amount, a simple calculation method based on its net premium or relevant claims outstanding is used.  The capital base must also be no less than HK$20 million.
  • fitness and properness of authorized representative of Lloyd's;
  • reporting requirements;
  • maintenance of local assets in Hong Kong; and
  • regulation on insurance intermediaries.

Lloyd's is also subject to the interventionary powers and certain regulatory powers of the Insurance Authority under the IO.