Lloyd’s of London plans to overhaul ‘unclear’ rules on handling misconduct

Lloyd’s of London said on Thursday it plans to review its rules on handling misconduct in the commercial insurance market because its current processes for dealing with bad behavior may be “unclear”.

Lloyd’s of London, which employs nearly 50,000 people in insurance underwriting and brokerage, has been scrutinized for behavioral issues, including sexual harassment. But Lloyd’s handling of those issues has also been criticised, industry sources said.

The insurance market said it aims to provide greater clarity about the types of behavior it finds unacceptable and when and how Lloyd’s will intervene in conduct issues.

Lloyd’s also said it proposed a new category of misconduct aimed at those who mistreat witnesses and whistleblowers. Other categories of misconduct include dishonesty and bullying and harassment.

It proposes a new framework for dealing with misconduct, where most issues “will be dealt with through the internal processes of the firms themselves”, according to a consultation document.

“Our current processes for dealing with issues of inappropriate behavior can be unclear and override our own firms’ intervention processes,” it said.

Lloyd’s operates a market of over 50 insurance companies.

Lloyd’s has some regulatory powers of its own and can impose sanctions such as fines, the publication of public censure notices and formal suspension from the market. Companies operating on the Lloyd’s market also have their own policies covering behaviour.

Lloyd’s is seeking feedback on its proposals until mid-December.

(Reporting by Carolyn Cohn; Editing by Jane Merriman)