Lloyd’s trade body examines planned conduct overhaul

(Reuters) — Lloyd’s of London members have set up a working group to examine the commercial insurance market’s plans to overhaul its conduct rules, a trade body said Friday, following criticism of the strengthened powers in the new rules.

Lloyd’s has come under pressure in recent years to clean up the market, home to nearly 50,000 people working for underwriters and brokers, after admitting to problems with daytime drinking and sexual harassment.

Lloyd’s, which has some regulatory powers, said in September it would overhaul its rules on dealing with poor conduct, as its current processes could be unclear. Its consultation on the proposals ends Monday.

Arabella Ramage, legal director for the Lloyd’s Market Association, said in an email the trade body was “supportive of Lloyd’s’ aim to ensure the market is well run and a great place for people to come and work.”

The LMA will submit a response on behalf of its membership, she said. The LMA has set up a working group about the consultation.

Plans for the working group follow an article in Reuters publication the Insurer in October by barrister Michael Uberoi criticizing the new rules.

Mr. Uberoi said in the article that some proposals were “remarkable in their breadth and … would result in the Lloyd’s regulator enjoying wider powers than those generally enjoyed by equivalent regulators.”