We are responsible for supervising a diverse range of insurance companies. These include life, general, wholesale, reinsurance and international companies. Even within these broad categories there is substantial diversity in firm structures and sizes as well as products, which shapes the business models and risks to which these insurers are exposed. We tailor our application of the supervisory assessment framework to take account of this diversity and ensure a proportionate approach.

The Society of Lloyd's and the Lloyd's market

132. We are the prudential supervisor of the Society of Lloyd's and the managing agents that operate within the Lloyd's market.

• We supervise the Lloyd's market to the same standards as regulated firms in the insurance market outside Lloyd's. But the unique legal framework of Lloyd's means that we need to tailor our approach.

• Supervision is carried out at two levels: (i) the Society of Lloyd's itself (which provides central functions, including the maintenance of the New Central Fund); [As provided for in the Lloyd's New Central Fund Byelaw (Number 23 of 1996).] and (ii) each of the managing agents (which carry out the underwriting and risk management functions for Lloyd's members).

133. We have powers to intervene directly with individual members of Lloyd's (or with all of them together) or to direct the Council or the Society (acting through the Council) if we determine that such action is necessary for the purpose of advancing our objectives.