The LMA has published the following updated documents to support the Coverholder Audit process:

• LMA Coverholder Audit Scope
• LMA Coverholder Audit Guidance

The documents are available (including track change versions for information purposes only) here.

This round of changes has been kept to a minimum and includes:

• General updates to align terminology/expectations to current Lloyd’s/LIC/market practices
• Addition of Scope content previously omitted from the Guidance so both documents clearly align
• Addition of Immediate Priority Recommendation Table
• Minimum file review criteria amended to reflect requirements for an appropriate ‘cross-section’
• References to Lloyd’s Mandate of Lead Security/Crystal+ added
• Customer Outcomes updated to reflect vulnerable customers/good (replacing fair) customer outcomes
• Financial oversight expanded to include any cascading risk transfer risks
• Additional clarity in Reporting section
• IT/Information Security expanded to reflect cyber and artificial intelligence risks.

The LMA would like to thank the members of the Delegated Authority Best Practice Group and its co-opted working group, together with various subject-matter experts, for their engagement and assistance in getting these revised documents finalised.

The revised scope is currently with LIMOSS to ensure the necessary changes are replicated in the Delegated Audit Manager (DAM) platform. In view of this LIMOSS work in progress, Lloyd’s has triggered the Q1 2026 audit programme on the basis of the existing scope. We are hopeful that LIMOSS will be able to finalise the DAM updates in good time for them to be ready for the Q2 audit programme.

For more information regarding DAM please refer to Lloyd’s and/or LIMOSS.

The LMA aims to build on this “mini update” with a wider review process planned to commence in 2026.

Diane Gillett
Senior Executive, Delegated Authorities
diane.gillett@lmalloyds.com