Prudential Regulation Authority Rulebook

7.1

This Chapter applies to the Society.

7.2

In calculating the SCR for Lloyd’s, the Society must ensure that the SCR is calibrated so as to include:

1. (1) all quantifiable risks to which members are exposed as a consequence of those members carrying on insurance business at Lloyd’s; and
2. (2) all quantifiable risks to which the Society is exposed, including risks to the central assets and central liabilities;

in the manner required by 3 (and, where an internal model is used, in accordance with the Solvency Capital Requirement - Internal Models Part of the PRA Rulebook and where the standard formula is used, in accordance with the Solvency Capital Requirement - Standard Formula Part of the PRA Rulebook).

7.3

The Society must calculate a central requirement for Lloyd’s which meets 7.2(2).

7.4

The central requirement must take account of the risk that the central assets may be used to meet deficiencies (as to amount or quality) in own funds attributable to members, such own funds supporting members’ insurance business at Lloyd’s.