The Lloyd’s Market Association (LMA), the body representing the interests of managing agents and Lloyd’s brokers, has partnered with professional services consultancy Barnett Waddingham, part of Howden, to launch an AI adoption toolkit to support managing agents (MGAs) in developing and strengthening an artificial intelligence (AI) governance framework across the Lloyd’s market.
As AI use cases continue to expand, the toolkit will provide practical, principles-based guidance to help companies move from early experimentation to more structured, governance-led adoption.
The framework is flexible and can be adapted to different organizational structures, risk appetites and regulatory environments.
The launch follows recent research from the LMA, which highlighted that the adoption of artificial intelligence is increasing across the market, calling for attention to governance and risk management frameworks.
The pair explained that the toolkit is built around five core principles: governance and accountability, risk stratification, data protection, security and intellectual property, and training and awareness.
The framework is designed to allow MGAs to reap the benefits of emerging technologies while providing a structured framework. It also encourages companies to start with lower-risk use cases, embed appropriate controls from the outset, and gradually expand adoption as the governance framework matures.
The toolkit highlights the importance of maintaining human oversight, aligning internal policies with changing regulatory expectations, and ensuring AI deployments are supported by effective training and clear accountability structures.
Sanjiv Sharma, head of actuarial and risk management at Lloyd’s Markets Association, commented: “As the use of artificial intelligence in Lloyd’s Markets continues to evolve, attention is increasingly turning to how it is implemented and managed in practice.
“The toolkit is designed to provide practical guidance to help businesses embed appropriate controls early, manage risk effectively and scale adoption in a structured way.”
Wan Heah, partner and head of general insurance at Barnett Waddingham, added: “Businesses are moving beyond experimentation and starting to embed AI more broadly into their operations.
“The challenge now is to ensure governance frameworks keep pace with increasingly complex use cases. This toolkit is designed to support businesses as they move to the next stage.”