Lloyd’s Chairman Lord Peter Levene has told the industry it must eliminate conflicts of interest and restore the confidence of consumers in order to move forward.

Speaking at the Risk and Insurance Management Society annual conference last week in Philadelphia, Lord Levene outlined a four-point plan to restore confidence in the industry.

They are: eliminating conflicts of interest and increasing transparency; working with the regulators to develop ethical principles of behaviour; communicating more effectively how insurance works; and working with boards of directors to demonstrate that managing risk seriously is “a critical element of good corporate governance”.

“After three investigations in almost as many years, into investment banking, mutual fund, and insurance industries, the financial services sector is certainly learning lessons,” Lord Levene said.

“[The industry] has been left with a tarnished image in the minds of consumers, regulators and commentators. As a sector, the very business of financial services is based on trust, and we can no longer be in doubt that governance and proper conduct take their place at the top of the agenda.”

He told delegates the industry can’t afford to be complacent, because “recent issues have tarnished the entire sector, not just the few bad apples in the barrel”.