FCA's decision to drop DEI data reporting "disappointing", says LMA

By Rebecca Delaney

March 13 - (The Insurer) - The Lloyd's Market Association has argued that inclusion is essential to the future success of the market after the UK Financial Conduct Authority said it would not progress with its diversity, equity and inclusion data reporting for regulated firms.

The FCA had consulted in parallel with the Prudential Regulation Authority in September 2023 on proposed rules and expectations aimed at improving DEI at regulated firms to boost representation and stamp out bullying and sexual harassment.

In a statement on Wednesday, the FCA said: "In light of the broad range of feedback received, expected legislative developments and to avoid additional burdens on firms at this time, the FCA and PRA have no plans to take the work further."

Sheila Cameron, CEO of the LMA, underlined the importance of data in enabling the Lloyd's market to track progress against targets and ambitions around representation in leadership roles.

"Lloyd's market insurers have been reporting this data to Lloyd's since 2020, and it has been a hurdle principle of Lloyd's oversight since 2022," said Cameron.

"Inclusion is a cornerstone value of the LMA and essential to the market's future success."

The latest Lloyd's market practices and policies return, published on Wednesday, showed that the proportion of women in leadership roles across the Lloyd's market rose by 1 percentage point to 36% in 2024.

The return also found that 22% of new hires in the past year came from an ethnically diverse background. Although this was a 1 point improvement from 2023, the market has still not yet reached its 33% target.

Also commenting on the FCA's decision to scrap DEI data reporting, Hannah Gurga, director general at the Association of British Insurers, said: "Advancing and promoting DEI and improving representation in the workplace is vital to an effective insurance and long-term savings industry.

"While we had supported the FCA's proposals, we will continue to champion DEI across our industry through our Blueprint, Allyship Awareness training, and collaboration with members and stakeholders."

The FCA is also due to set out the next phases of its work on non-financial misconduct by the end of June.