Lloyd’s establishes ethnic minority ambition

Lloyd’s establishes ethnic minority ambition | Insurance Business Canada

Lloyd’s establishes ethnic minority ambition

Lloyd’s of London has today unveiled its 2021 Culture Dashboard and announced its ambition that a third of all new hires across the market and corporation should come from ethnic minority backgrounds. The insurance marketplace said this should be targeted at all levels of the organization, including among the leadership tier, and noted that the current level of representation of ethnic minorities stands at 8% in the marketplace and 22% in the corporation.

Lloyd’s highlighted, however, that though improving this representation at all levels is a priority, it requires the right data to measure its progress. Therefore, to further improve its data set, it will be mandating the collection of ethnicity data in 2021.

“Over the past 12 months we have already seen progress in this area,” Lloyd’s said, “with the ethnicity disclosure rate increasing by 11 percentage points to 60%, and 74% of firms now able to provide ethnicity data compared to 43% in 2020. We must be strong in our resolve to address this issue in a meaningful way.”

In addition to ethnicity, other key areas of focus for the Culture Dashboard, which is the second of its kind following last year’s inaugural report, include culture and gender. Lloyd’s stated it has been “reassured” to see a large increase in the proportion of risk committees (up 24%) and boards (up 31%) which cite culture as a standing agenda item and that it will continue to ensure culture remains a priority on the leadership agenda.

With regards to gender, Lloyd’s said it is pleased to have maintained progress on achieving gender balance across the market but recognizes there is a long way to go yet. There has been a particular increase at the board and executive level, but Lloyd’s noted the need to increase the level of representation among direct reports of executive committees.

“From a corporation perspective,” Lloyd’s said, “we have reached gender parity at an overall leadership level. Across the market, our 35% aspiration has already been met by 28% of firms, but we must work to increase this across the board.”

Main components of its Culture Dashboard

  1. Data and targets – Lloyd’s has set its ambition that a third of new hires should come from ethnic minority backgrounds. It has also invested in its data capability to analyze trends for attraction, recruitment, progression and performance to further its understanding of how it can improve its functions. It will also publish its ethnicity pay gap annually.
  2. Talent and attraction – Lloyd’s will look to enhance its inclusive hiring practices across all roles and increase the diversity of available interviewers for interview panels. It will work with external recruiters and build more external partnerships to increase ethnically diverse shortlists for experienced hires. For early careers, it will work with the London Market Group to raise the profile of opportunities in the insurance industry.
  3. Talent management – Lloyd’s will identify participants for its leadership development program for ethnic minority colleagues within the corporation and market, Accelerate. It will also establish sponsorship and mentoring opportunities for ethnically diverse employees.
  4. External promotion, advocacy & engagement – Lloyd’s has recruited an archivist to increase its understanding of Lloyd’s historical artefacts and will embed its commitment to ethnic diversity in its narratives about Lloyd’s. On an ongoing basis, the marketplace will share stories that illustrate and celebrate ethnic diversity within the corporation and the market.