London insurance firm is fined £1 million for bullying, sexual harassment, and heavy drinking

Insurance firm fined for bullying sexual harassment and heavy drinking

March 18, 2022: -Lloyds of London, the U.K. insurance giant, has hit one of its member firms with a record £1.05 million fine for misconduct, including allowing an annual inappropriate “boys’ night out” for several years.

In a notice of censure, Lloyds said that its syndicate member firm Atrium Underwriters had accepted three charges of “detrimental conduct.”

One of the charges was for “sanctioning and tolerating throughout several years up until 2018 an annual ‘Boys’ Night Out’ in which some male staff members engaged in unprofessional and inappropriate conduct.”

This included “initiation games, heavy drinking, and inappropriate and sexualized comments about female colleagues.”

Lloyd’s charged Atrium as it failed to notify the insurer about the facts related to the misconduct of one of its members of staff, referred to in the document as “Employee A.”

In addition, the notice stated that Employee A’s conduct was known with Atrium, “but no adequate steps were taken to deal with it.”

“Employee A’s behavior included a systematic campaign of bullying against a junior employee over several years,” Lloyd’s said, adding that Atrium failed to protect the junior staff member once it became aware of the bullying.

Lloyd’s said that Atrium was not successful in acknowledging or challenging Employee A’s behavior, “motivated in part by the desire of senior managers to protect Atrium from bad publicity.”

The employee complaining about Employee A was instructed not to speak about Atrium’s investigation into the misconduct or allegations.

The notice said that because Atrium had settled these proceedings at the “earliest opportunity,” Lloyd’s Enforcement Board accepted a 30% discount on the fine, which would have been £1.5 million. In a separate statement, Lloyd’s said that this was still the largest ever fine imposed in its 336-year history.

In addition to the fine, Atrium agreed to pay Lloyd’s £562,713.50 in costs.

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London insurance firm is fined £1 million for bullying, sexual harassment, and heavy drinking
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London insurance firm is fined £1 million for bullying, sexual harassment, and heavy drinking
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Lloyds of London, the U.K. insurance giant, has hit one of its member firms with a record £1.05 million fine for misconduct
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