Leaders in the London insurance market have welcomed the release of the results of the investigation into the behaviour of the former CEO of the Lloyd’s insurance market.

The investigation was launched last November following the departure of John Neal by incoming chairman Sir Charles Roxburgh amid allegations that Neal had been in a relationship with the market’s then corporate affairs director Rebekah Clement.

The council of Lloyd’s which undertook the investigation concluded they could find no “conclusive evidence “ the pair were romantically involved.

However, it added: “Based on the findings of the investigation, the Council of Lloyd’s found that the relationship between Mr Neal and the former Corporate Affairs Director, Rebekah Clement, was sufficiently close during their employment at Lloyd’s that it could be viewed as creating a perceived conflict of interest. This was not disclosed by either Mr Neal or Ms Clement.

“The Council found that this failure to disclose constituted a breach by both Mr Neal and Ms Clement of Lloyd’s global compliance policy and procedures, which clearly state that any conflict of interest, including perceived conflict of interests, must be disclosed. This compliance failure resulted in a missed opportunity for Lloyd’s to put steps in place to manage any conflict of interest.

“The investigation found that senior individuals at Lloyd’s raised concerns directly with Mr Neal during his employment at Lloyd’s regarding the nature of his relationship with Ms Clement. Mr Neal acknowledged both the concerns and his responsibilities to Lloyd’s. He undertook to modify his conduct. However, the investigation found no evidence of material change in Mr Neal’s conduct thereafter.

“The Council has concluded that Mr Neal’s failure to address these concerns, after they had been raised with him directly on more than one occasion, fell significantly below the standards of judgement, transparency and accountability expected of a Lloyd’s Chief Executive. In addition, the Council found that Mr Neal failed to ensure that certain whistleblowing reports made in November 2023 were properly handled in line with his responsibilities as a Chief Executive.

“The Council considers that Mr Neal’s conduct therefore constitutes a breach of the Lloyd’s compliance policy and his employment contract.”

Neal spent seven years as CEO  and the statement added that their investigation had been lengthened by Neal and Clements’ refusal to answer questions around their relationship and Neal also refused to allow the investigators access to his mobile phone.

This extended the investigation as the team spoke to over 40 witnesses in an effort to get to the truth.

Roxburgh said: “Trust, integrity and effective oversight are fundamental to Lloyd’s. Based on the findings of this investigation, we have concluded that the conduct of the former Chief Executive fell significantly below the standards expected of him. It also established serious failings in the governance standards and in following processes, most worryingly in the handling of whistleblowing reports. These were serious failures that should never have been allowed to happen.

“These findings underline the importance of robust governance structures and processes. Where standards were not best-in-class, we have put that right. However, governance can only ever be part of the answer. Culture and personal accountability also play a vital role. That is why the Council of Lloyd’s is unequivocal about the behaviour we expect from everyone, at every level, at the Corporation of Lloyd’s.”

Sheila Cameron, CEO of the Lloyd’s Market Association, said in response to the statement: “The Council of Lloyd’s has today published the key findings and actions from its investigation, which it found that John Neal’s behaviour ‘fell significantly below the standards of judgement, transparency and accountability expected of a Lloyd’s Chief Executive.

“This was clearly an extensive and thorough investigation, interviewing dozens of witnesses and reviewing copious amounts of documentation and other evidence sources over a number of months. My first thoughts are with these witnesses, who bravely spoke up and I applaud them for doing so in what must have been difficult and trying circumstances. Their courageous efforts will ensure the Corporation of Lloyd’s learns lessons that will bring about meaningful change.”

She continued: “Earlier this year, Lloyd’s chair Sir Charles Roxburgh announced a number of significant governance changes, as he sought to rebuild confidence in the Corporation of Lloyd’s.

“Since taking office just over a year ago, Sir Charles has been unwavering in his commitment to follow the evidence of the investigation and on ensuring the highest standards of corporate governance are applied, as is and should be the role of a strong chair.  This includes self-reporting Lloyd’s Corporation’s own whistleblowing policy breaches to the FCA.  Sir Charles also deserves enormous credit for ensuring that the witnesses’ voices were finally heard as part of this investigation.”

Cameron added: “The statement outlines some additional changes that will be needed and that the Corporation of Lloyd’s is committed to implementing these promptly.  We look forward to working with the Corporation of Lloyd’s on ensuring the market understands these governance changes and supports their implementation.  This will have the effect of increasing confidence in the Corporation of Lloyd’s and enhancing the reputation of the wider market.

“Good governance depends not just on processes, checks and balances but importantly on the personal values of those who govern and lead the London insurance market. We must always be prepared to ask the difficult questions and to listen carefully to those who sound an alarm when standards aren’t being upheld.  It also depends on the integrity of all of us and our determination to do the right thing in our everyday actions, no matter how difficult that may be.

“In London alone, there are 60,000 people working in specialty insurance and the overwhelming majority hold themselves to high standards and have a deep pride in, and passion for, the Lloyd’s marketplace.  Let’s now focus on supporting the Corporation of Lloyd’s to implement the lessons learned and ensuring that the actions of the few don’t deter the will of the many to make the specialty insurance market a better and stronger place.”

London Market Group CEO Caroline Wagstaff added that she hoped the statement and the investigation’s conclusion would draw a line under the issue.

“For me, this investigation was as much about the future as the past – ensuring the proper protections were in place moving forward. Real people suffered real harms and that can’t happen again,” she said. “How do we ensure behaviours are as we would want them to be for everyone working in the market?  This statement suggests a lot of consideration has gone into answering that question and the changes are to be welcomed and supported.”

The council of Lloyd’s which undertook the investigation concluded they could find no “conclusive evidence “ the pair were romantically involved.