Lloyd’s, LMA & LIIBA welcome FCA’s non-financial misconduct report

The Lloyd’s insurance and reinsurance market, as well as the Lloyd’s Market Association (LMA) and LIIBA (London & International Insurance Brokers’ Association), two London-focused insurance and reinsurance organisations have shared their reactions to UK regulator, the Financial Conduct Authority’s (FCA) latest non-financial misconduct report.

Firstly, Lloyd’s CEO John Neal said, “We welcome the FCA’s increased focus in this important area and have supported the Lloyd’s market to respond to the recent culture and non-financial misconduct survey. Since 2019, Lloyd’s has maintained a critical focus on supporting an inclusive and high performing culture across the Corporation and market and will remain one of our top strategic priorities. While we are encouraged by the progress seen, now is the time to double down on our commitment and efforts to get to where we need to be. This means maintaining the focus we’ve placed on culture in recent years to continue transforming Lloyd’s for the better, while attracting the talent that is so vital to the success of our market.”

Next, Sheila Cameron, CEO of the LMA, commented: “The LMA supports the constructive work of the FCA on its recent culture and non-financial misconduct survey, which is a valuable snapshot of how financial service companies are dealing with critical issues around culture, diversity, equity and inclusion.

“We will now take time to study the detailed recommendations of the report while we look to support the FCA in continuing to deliver cultural change in our market.”

Cameron noted that this is not the first study that the LMA has conducted within this area.

In fact, she went on to explain that the Lloyd’s market has been gathering this data since 2020, through its annual demographic data collection, as well as its culture survey.

She continued: “Through our own data we know that in 2024, 84% of those who work in the Lloyd’s market recommend their organisation as a great place to work, while 80% of this same group say there is a positive leadership focus on culture in their organisation (versus 66% of employees in wider financial services). We have also seen the volume of people observing poor behaviour in the Lloyd’s market drop by over 10% in the last year alone – a huge marker of how fast cultural change is progressing.”

Concluding: “This tells us that cultural evolution and progress is a journey for our industry and not a destination. We are pleased to work with the FCA on their governance and board oversight initiative, and we look forward to sharing the lessons the Lloyd’s market has learned over the last five years as we continue the journey together to a diverse, equitable and inclusive industry.”

Also commenting is Chris Croft, CEO of LIIBA, who said: “LIIBA welcomes the FCA publishing these survey results and its continued focus on firm culture. We will study the results and look at ways in which they can help us further support our members in this area. The FCA rightly recognises that some issues pose different challenges for smaller firms and, with 80% of our membership employing fewer than 50 staff, this part of our community will be a key focus of our work. We look forward to working closely with the FCA to ensure our ongoing programme delivers the right outcomes for our members and their clients.”

Croft went on to describe the survey as a “valuable addition” to the toolset available to firms to address the crucial issue of non-financial misconduct.

He added: “In particular, as the FCA says, it is an opportunity to benchmark where they stand relative to their peers and focus on specific areas for improvement. Positive cultures deliver good business outcomes and we want to help our members achieve that.

“Our work to support intermediary firms in building out better misconduct and culture programmes – many intermediaries are smaller and have shallower HR resources than wholesale banks and insurers, so we see a role for Liiba in this space – has already included hosting events for HR teams to help them understand how best to handle Non-Financial Misconduct.”

He concluded: “We are now likely to repeat this programme and the FCA report gives direction on specific areas of focus for this work. Our work supporting intermediaries in diversity and culture issues has been award-winning this year; and we will continue to push for positive change across the market.”

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