Oliver Wyman: Cultural And Behavioural Change In The London Insurance Market
Article Synopsis :
There has been renewed interest in the culture within Lloyd’s and the London Market in 2019 and for all of the wrong reasons.
Stories emerged of a culture that was dominated by poor personal conduct that has no place in any 21st century workplace.
Lloyd’s found that in the previous year 8% of respondents had witnessed examples of sexual harassment in the Lloyd’s market. Yet, only 45% felt able to raise a concern about what they had seen.
Almost a quarter (24%) had witnessed excessive consumption of alcohol over the same period and more than a fifth (22%) had seen their own organisation overlook inappropriate behaviour.
Finally, one in six felt that the leadership of their organisations fail to take responsibility when things have gone wrong.
The investigation saw Lloyd’s commit to cultural transformation on top of the five-point plan they launched earlier in the year, to include gender balance, business conduct, a culture dashboard, plus independent advisory group.
Scrutiny will continue, and there is a real cost in terms of regulatory actions, financial fines, reputational damage hitting the share price, the inability to attract and retain the best talent, etc.
Sweeping reforms may have an immediate impact, but for the transformation to be sustainable, numerous small steps are required to effect permanent change.
A clear and unequivocal language must be developed so that all stakeholders can understand what they should expect of the culture and what is expected of them.
Insurers, take your marks
Oliver Wyman sees the Lloyd’s three Standards of Business Conduct as an opportunity for organisations to build or develop their own corporate values.
This must be enshrined within practice within the business. This requires clear articulation of what needs to change from now to the ultimate destination.
But that doesn’t mean rejecting all elements of the old culture. Businesses need to understand which bits are good and should be kept.
Getting buy-in from employees will go a long way to embedding a new culture in an organisation.
No overnight success
This is not going to happen quickly. Many organisations focus on the big themes and forget to mark the smaller, incremental opportunities.
This requires supporting individuals through the change and 90-day cycles improves adoption of the desired behaviours and delivery of results.
Leadership is essential to the success of these 90-day cycles and nudges through coaching, learning, communications such as group discussion, dialogue, media use, crowdsourcing, etc can reinforce the message.
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Digital Insurer's CommentsWe spend most of our time in the library examining papers lamenting the slow pace of digital transformation.
This paper looks at the structural cultural problems within Lloyds and the London Market that should have been consigned to the dustbin of history decades ago.
Businesses are going to have enough trouble streamlining for this digital age, without having to unpack decades – even centuries – of obsolete cultural programming.
This paper highlights a roadmap for insurers looking for the 21st century.
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