LONDON, Sept 12 (Askume) – Lloyd’s of London (SOLYD.UL) said on Thursday it plans to change its rules for tackling bad behaviour in the commercial insurance market because its current process for tackling bad behaviour can be “ambiguous”.
Lloyd’s of London, which employs about 50,000 people in insurance underwriting and brokerage, has come under scrutiny for conduct issues including sexual harassment. But industry sources say Lloyd’s has also been criticised for the way it has handled the issues.
The insurance market said it aims to be clearer about what types of behaviour it considers unacceptable, and when and how Lloyd’s intervenes in conduct issues.
Lloyd’s also said it was proposing a new category of misconduct targeting those who mistreat witnesses and whistleblowers. Other categories of misconduct include dishonesty, intimidation and harassment.
It said in a consultation paper that it was proposing a new framework for tackling bad behaviour, much of which would be “dealt with through the company’s own internal processes”.
“Our existing processes for dealing with issues of poor conduct may be unclear and may impact the company’s own intervention processes,” the report said.
Lloyd’s operates a marketplace of more than 50 insurers.
Lloyd’s has some regulatory powers of its own and can impose sanctions such as fines, issuing public censure notices and formally suspending the market. Companies operating on the Lloyd’s market also have their own conduct policies.
Lloyd’s is seeking feedback on its proposals by mid-December.
