Today the Bank of England tells insurance companies to improve their working cultures after revelations about sexual harassment and bullying in the industry.
The Prudential Regulation Authority has flagged recent instances of alleged abuse as of “deep concern” and said bad behaviour could result in senior managers being banned from the sector.
The Senior Managers & Certification regime (SMCR) was rolled out to insurance firms late last year and will hold senior managers to account.
Patrick Butler, co-founder of the Culture and Conduct Academy at UK Finance:
“As regulators become more expert as to how senior managers can and should drive better conduct, they will become less tolerant of senior managers’ inability, or unwillingness to find ways to measure and manage culture effectively.”
Tools specifically designed with conduct risk and behaviour in mind offer a rigorous and systematic approach to gain insight on clients and staff. This will give firms the ability to link behaviour to value and give accountable managers tangible ways to move the dial on conduct and culture.
The spotlight isn’t just on insurance companies, but the message is clear: there is more work to do to stamp out bad behaviour, evidence compliance with SMCR and give leaders confidence.
SMCR is not just limited to the insurance and banking sector. With the 9th December deadline fast approaching for insurance brokers, wealth and asset managers, there are opportunities to build trust, inspire staff to control risk and create sustainable business value.