March 4, 2020 / 5:54 PM / a month ago

Bank of England warns insurance boards against 'groupthink'

FILE PHOTO: Workers emerge from Bank underground station with the Bank of England (L) and Royal Exchange building (R) seen in the City of London financial district, London, Britain, January 25, 2018. Picture taken January 25, 2018. REUTERS/File Photo

LONDON (Reuters) - Insurance company board members with different skills and experience reduce the risk of “groupthink”, the Bank of England said on Wednesday, reminding firms to comply with requirements to have a diversity policy.

Insurers and other financial services firms “should seek a broad set of qualities and competencies when recruiting to

the management/governing body”, a letter from four executive directors of the Prudential Regulation Authority said.

Compliance to the rules requiring firms to have a policy to improve diversity at the top was “still not universal”, it said.

“Chairs should take this opportunity to satisfy themselves that their firm is meeting the PRA’s requirements and take remedial action where they are not.”

Lloyd’s of London has been trying to improve diversity in the commercial insurance market, which employs 45,000 people, and has acknowledged issues with sexual harassment and day-time drinking.

Reporting by Carolyn Cohn; Editing by Alexander Smith

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