Lloyd's of London is attempting a major cleanup to address allegations of inappropriate workplace culture, including heavy drinking and sexual harassment.
The insurance exchange has launched a consultation to revise its internal rules, as it seeks to clarify its processes for handling financial and non-financial misconduct. The overhaul follows a 2019 survey in which 8% of respondents admitted to witnessing sexual harassment. As a part of the reforms, Lloyd's will update its bylaws to move into closer alignment with the policies set forth by the Financial Conduct Authority (FCA).
In 2022, Atrium Underwriters — a Lloyd's subsidiary — was fined for failing to address complaints of harassment and bullying. According to Lloyd's, Atrium staff, including senior managers, participated in events featuring "heavy drinking and inappropriate, sexualised remarks" directed at female employees. The firm's current efforts aim to address such issues and prevent further misconduct.
The FCA has also begun supervisory work — led by Sarah Pritchard, Executive Director for Markets and International — to assess how firms manage non-financial misconduct cases, such as bullying and harassment. "We are looking to firms to explain numbers of non-financial misconduct cases, methods of detection, and methods of resolution," Pritchard has said.
Notably, Lloyd's reform efforts seem to be primarily focused on updating its policies and processes, in hopes that this will lead to changed behavior. In our most recent Weekend Reading article, Starling Founder & CEO Stephen Scott argues that this focus is unlikely to change the culture driving employee misconduct. Rather, he urges leaders to attend to the factors that ultimately decide whether their reforms are successful: their people, presumptions, and practices. ▸ Read More
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