Lloyd’s of London is planning a review of the rules to tackle “inherently unacceptable” behaviour.

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Lloyd’s of London is consulting on changing its rules to crack down on inappropriate behavior in the centuries-old market as it seeks to dispel a reputation for sexual harassment and misconduct by market participants.

In a consultation published on Thursday, Lloyd’s – made up of more than 50 insurers and hundreds of brokers – accepted that its current processes for dealing with misconduct were “unclear”. Its processes could override the intervention processes of its own firms and there should be “greater certainty” about potential outcomes, it added.

The proposed changes included a new, non-exhaustive list of unacceptable behaviour, including harassment or bullying and discrimination.

A proposed change to the rules would prohibit “the conduct of Lloyd’s business while under the influence of alcohol where it results in unprofessional conduct”.

The proposals would also prohibit business conduct such as dishonest dealing.

Lloyd’s proposed to clarify in the regulation that it was not necessary for the market to demonstrate that it suffered “institutional” harm because misconduct occurred.

“Some behavior (for example, illegal drug use, bullying or harassment) is inherently objectionable by its very nature and should be actionable as such,” the consultation continued.

Lloyd’s, long associated with a male-dominated drinking culture, has struggled to stamp out personal misconduct in the market.

Two years ago, it issued the first non-financial fine against insurer Atrium for behavior that included sexually harassing female staff at an annual “lads’ night out”. It revealed in 2019 that nearly 500 people had witnessed sexual harassment.

Market participants have become increasingly concerned that conduct such as harassment may fall below the current threshold for corporate and individual bans. This covers behavior that may bring the wider market into disrepute.

Mirroring the rules set by the UK’s Financial Conduct Authority, Lloyd’s also proposes to clarify that conduct that is outside of work, but in the presence of other market participants, will fall within the scope of its rules.

But Lloyd’s said in the consultation that it would not seek to become “more directly interventionist” and would instead rely primarily on market firms to control behaviour. The consultation set out a proposed process for how it will decide when action is needed by the institution itself.

Lloyd’s said in the consultation that it would not tolerate any insurer that was classified as underperforming because of poor culture. If no remedial action was taken, it would consider “taking steps to remove that firm’s permission to operate in the Lloyd’s market”, it added.

Sheila Cameron, chief executive at Lloyd’s Market Association, which represents insurers in the market, welcomed the consultation and said she looked forward to hearing a “wide range of views” on the proposals.