Lloyd’s fines insurer over unacceptable behaviours

Lloyd’s has issued a Notice of Censure and its biggest-ever fine in response to misconduct that took place at Atrium, a managing agent in the Lloyd’s market.

The inappropriate behaviour included heavy drinking among some male managers, initiation games and inappropriate sexual remarks about female staff. The public censure details three charges, to which Atrium has admitted.

Lloyd’s said the size of the fine imposed by the Lloyd’s Enforcement Board “reflects both how unacceptable these circumstances were, and the seriousness with which Lloyd’s is treating this issue”.

Lloyd’s chief executive John Neal commented: “We are deeply disappointed by the behaviour highlighted by this case, and I want to be clear that discrimination, harassment and bullying have no place at Lloyd’s.

“The robust action we have taken today, including the largest fine ever imposed by the Lloyd’s Enforcement Board, shows that we will not tolerate poor conduct in our market.

“Lloyd’s expects all participants in the market to meet the highest standards of professionalism, and we are continuing to use our powers to intervene when needed.

”Everyone in the Lloyd’s market and Corporation should expect to work in a culture where they feel safe, valued, and respected and if they see unacceptable behaviours, to speak up with confidence, in the knowledge that action will be taken.”

Atrium Underwriters admitted charges relating to bullying and misconduct during annual ‘boys’ nights out’, which took place over a number of years up until 2018.

During these events, some male members of staff, (including two senior executives in leadership roles) engaged in unprofessional and inappropriate conduct, according to the Notice of Censure.

Some of this conduct was led, participated in and condoned, by the two senior managers in attendance.

Atrium said it accepted the ruling, was sorry for the hurt caused and would ensure it never happened again. The managing agent is implementing changes focused on improving its culture and diversity and inclusion (D&I).

Atrium must also pay Lloyd’s costs of £562,713, the report said. The findings followed an investigation by Lloyd’s enforcement team.