this is one of the most famous brands in the financial world, but it -- it is one of the least understood. as ar than operating traditional insurer, it is a marketplace where members can join together. over the years they have insured everything from oil rigs to space shuttles and to david beckham's legs. today we meet the chief executive of lords of london. you became chief executive back in 2014.

was it easier or harder than expected? wo things. it was easier to comment because people knew me from the past. i have worked in insurance for 36 years. i think i underestimated the impact that would have a on people accepting me into the world. i already had that respect. they said, she knows industry. i had that respect and it made it easier. is thekes it so tough new mistake or holders. i had not anticipated that running a market, so many people would be interested in what is going on and you would be pulled in so many different directions. it always reminded me of going mirror old fairground experience when you look into the weird mirror and it would pull you in directions like this. that is how it feels and that is how it felt when i started. why are all these people so

interested. anis because lloyd is such amazing 330-year-old institution. it operates in 200 countries and territories. you have the government interested in it. you have individuals. this is, scientists. everybody seems to be interested. that is what i underestimated. the complexity of the state cold base i have been trying to manage. is it difficult to change on eight diversity level and technology level? the markets are made up of syndicates. they are sharing complex risks that they do. i cannot necessarily tell them what to do. i have to influence and bring them along with me if we are going to make change happen. there are over 80 of these individual businesses. each one has a ceo. because they are our employees

and operating in a market and i wanted to take the market forward and introduced of working,new ways change the environment, make it more modern, dynamic, perhaps get rid of some of the old traditions that i do not think are making it appealing anymore. i had to bring all of those business leaders with me. that has been really tough. francine: traditions like what? the use of people as opposed to using technology? inga: it is really because the business is done identically to the way it was done 300 years ago. when we were all meeting in the 's coffee house and all the mariners were meeting. the word underwriter was formed which is when people -- it was like an original crowdfunding. they all got together and said, it won't be our ship that goes

down. we will pull together and underwrite your ship, or your cargo. they wrote their name underneath each other. it would have been done on some form of paper and we still do that today. francine: how crazy. inga: it does seem absolutely crazy. some of it is because we do very complex, difficult stuff. a lot of it is new. it will be a new piece of technology, or business -- business investments. you need that face-to-face negotiation to create the insurance product that is needed. it is traditionally with lots of paper. we are modernizing. we have introduced loads of technology. the technology is not tricky, it change thepeople to way they are interacting with each other on a daily basis. they like their world. they like coming and meeting

with people. around,t of people anywhere, any firm or in our personal life, people don't like change. they are frightened of it. you have to win them over and say it is just about moving forward. i often think about it, or i talked about how uncomfortable, or how dissatisfied they would be if they did not have the latest digital technology in their pockets, or somewhere around them, their mobile device. just think if that had not progressed in the 20 or so years since we all started to have mobile phones. it would not be very happy. you think about our business and how our customers must feel. francine: you are stepping down early 2019, why? doing fivemitted to years. when i was approached for the job it was exciting. i would love to come in,

modernize the place and introduced technology. lotwhen you are driving a of transformation, you only have a certain amount of time before it needs somebody new. i will have completed my five years, i will feel pretty good at what i have done, and it is time to hand it over to somebody else. i have to be a bit selfish. at my age and means i am not getting any younger and i want to do one more egg executive role. -- one more big executive role. i have worked in insurance my entire career. francine: do you feel you have done everything you have wanted to do at lloyd's of london? if maybe you had more time at lloyd's of london would you not have gone out with a bigger bang? inga: the losses were basically -- wasby -- so, lloyd's the biggest thing. $12 billion it cost the lloyd's

market. but we are here to provide that financial compensation when things go wrong. we know that is what we do. it was not a shock. we have to expect it. --model for these launch large catastrophes. to fix underlying profitability in non-catastrophe type businesses. that is what we are focused on. francine: what is the role of hedge funds in your industry and in lloyd's of london specifically. inga: lloyd's of london has changed dramatically. it used to be funded by lots of individuals. they put their own money into lloyd's. it happened a few years ago before i joined five years ago. capitalave 90% of the that is no longer individual private names. it is either insurance groups who want to own something in lloyd's because they want to

access that business, or it might be some hedge funds. it might be some pension funds want to diversify their exposures in their investment portfolio. they are a minor part to the capital that comes into lloyd's, but they can also be an important part. we are all about being innovative, entrepreneurial, we are launching a lloyd's lab that will look at in gauging with tech startups, entrepreneurs, they will need backing. we may find that we have more interest going forward than has been because we will be doing a lot of new stuff. francine: did you feel like you always have the new chairman behind you? he was ready with your policy and innovation. did you feel -- did he feel you're going too fast or too slow? inga: i have hardly ever worked anywhere where you think the pace is not fast enough. we haven a market and

so many players to bring along with us. we have customers who have been with us for years. one of the first things i had to present that chinese aviation authority with a special scroll for 40 years relationship. we have to bring our customers along as well. the chairman's come on board. he realized the complexity and is completely supportive of all of the new stuff. francine: you said you have it in you to be another chief company. for a is that because you want to be a role model for other women, or is it just because you like innovating and changing? i do have a personal purpose that i want to empower women in business. because of that, you do feel and when you're in his senior role, particularly in financial services where we are not so

good on our diverse leadership team. i do feel pressure to be a role model. that is not what is really driving me. i love to be busy. i love challenges. i love transformation. i love getting people to see you what seems impossible become reality. i am just a very driven person from that point of view. francine: that was from the beginning from a very young age? when did you see that? inga: it came later. i was always competitive. i was sporty and competing. the motivation and drive and energy, i don't think it happened until i got to my 30's. working,arted off sport was important to me. my work was very much second. i did not focused on having a career.

got the opportunity i more i enjoyed. then the next came along and i enjoyed that. it has grown on me and i have grown on insurance. i have just had a wonderful time, but it has gotten me so excited. insurance has particularly kept me because we serve such a good purpose. still to come on leaders, die for supplying -- diversifying lloyd's of london. we talk about modernizing a 330-year-old company. ♪

becamee: in 2014, inga the first female chief executive at lloyd's of london. she has transformed the

institution, making waves and the leading voice for diversity in financial services. still had a 27% pay gap in 2017. what is the company doing to tackle inequality? how backward is the industry when it comes to diversity? inga: we are not doing that well. we are not the worst set her around. in the u k, having to report the gender pay gap has highlighted the financial services sector. banks are pretty bad and insurers are not so good either. getting that data out there will help us all realize where we are . i feel, do something about it. the gender pay gap at lloyd's in the u.k. is 27.7%. that is a sign of the lack of females in senior positions. we have to do a much better job. not of enticing them in the first place, but keeping women. getting them the confidence to go for those senior roles.

provide them with the sponsorship and mentorship that is going to be so important. i know how it affected you. i know that i needed that sort of extra boost, that extra help, but -- that helping hand. that is why i would like to do as much as i can to really create a very inclusive environment where women feel that they can do just as well as men. the insurance industry so has an old-school feel. drinking and smoking in pubs that lunchtime. is that the case? inga: we have tried to move on from that. many firms have tried to move on. that is definitely changing. we still have a lot of behaviors that go on that are not acceptable. we recently launched an inclusive behavior pledge. a few of us got together, and other female leader. we were sitting around one day

and said, there are some behaviors that happen at the ground level and people are interacting that are not necessarily appropriate. commentsht be sexist said to women, there might be racist comments. might be comments about the lgbtq community. people do not know they are being hurtful or excluding somebody from a conversation. they someday get shocked shut off and don't join in. these behaviors are not known. they might be done unconsciously. we have got to try to get to grips of this and highlight this. we have now got at least 50 signatures, so 50 ceos, 50 insurance firms, these are men who have signed up to say, let's address this behavior and make it more inclusive. saying, we will not tolerate bad behavior.

comments, excluding people and making them feel uncomfortable. we have just launched it and we will see where it goes. francine: i was looking at isbers, lloyd's of london 90% british, 90% white, 90% male? -- theverall, the might market might be that high at the leadership level. but through the entire market it is not. we know that we are alan's when we have people starting in our industry. moving up that seems to be the really difficult thing. we noticed also that the under are not doing we as well retaining them as we should be. they will be our future leaders. francine: because they are leaving london? inga: they are leaving the sector, not necessarily london. we have not been able to identify where they are going, but anywhere that is appealing to tech savvy people, people

where it has a more modern look, it feels very dynamic, you have flexible working approaches, we have got to change. peoplea bit -- we had still challenging, are you at your desk still, are you about to leave your desk, we have that mentality, which we are trying to change. francine: what do you think your legacy will be? ina: we will be digitalized very soon. we are mandating it. that has made a huge impact. we have managed to get lloyd's much more global. we have a really strong presence in key markets like singapore, china, dubai for the middle east, i was very proudly opening india this year. we have a much stronger foot some ofd presence in the exciting markets in the world. hopefully a much more inclusive working environment.

francine: up next, lloyd's of man-maderecast disasters could cost the world cities more than $320 billion a year. what kind of leadership does it take to ensure disasters, both natural and man-made? more comment next. ♪

francine: lloyd's of london started as a 17th-century coffee shop providing insurance to ship and cargo trade. now, it provides cover for some of the world's biggest businesses, including 52 of the weakest banks. what kind of leadership style does it take to manage a company of this complexity? inga beale is still with us. what are the qualities needed for chief executives to lead lloyd's of london?

similar tobly running any other big organization. you have to have courage. we have to make tough decisions. we have to make decisions that affect the entire market. that takes courage. you have to be convinced that this is the right thing to do. that also means that you have to include others. no ceo knows all the answers. i have been a ceo of a few other organizations. you have to include people i like to think of myself as an inclusive leader. i like to think that i would bring people along and they have been designing their future. then, you have to communicate, communicate and communicate. i cannot tell you how many times i talk about need for modernization in the markets and have au will conversation with somebody somewhere in the world who has not heard that message. you cannot over communicate.

you put all of that together with listening when you are including people, listen to them, get their ideas and communicate. i think that sums it up for me. francine: as a chief executive, what is the best communication style? halls, emails, howdy you communicate to your staff or participants of lloyd's of london? thinkevery way you can of. everybody wants something different. particularly now. buyers- when we have the of technology and the new generation is using mobile digital devices, they do not even use the traditional print newspapers that i am so used to when i grew up. when i learned that i had to reverse mental. -- reverse mentoring. it is all on the mobile phones. i said, everything. we get everything. this is how we get our news.

it was a wake-up call for me. i also realize that different generations want to see the ceo in different ways. a lot of the generation want to see you as a human. they want to know how you feel about things, what you think about things. some people in different generation and different cultures do not want that. they want to see you as sitting in more of an ivory tower. it was very interesting. i worked in germany for a while. there, it was almost vital that the employees saw you as .omewhat separated from them when i arrived and i said, no, let's break down these barriers, i want my office door open, of course people can walk past my office. toy found that difficult respect the ceo because the ceo should not be that open and approachable. you have to work out the cultures. that is why it is important to

different media when you are communicating. i do a lot of social media. i try to keep up, i have an instagram account to appeal to that audience. other times i might have to give a speech to a gathering of hundreds. i might have to have a more formal approach to my communication. it is difficult to always get it right. through.ity must come if you are not coming through as authentic, you will not get anybody to follow you, even believe you. francine: do you think you would have been more successful in another industry? inga: i never really thought about that. we get involved in other industries because we ensure all of them -- insure all of them. have i sometimes thought insurance has a great impact -- gray image and mi to colorful to

be in it? sometimes i feel i don't fit, but i absolutely love it. i know what we do and i get energized by it. is not necessarily a personality that suits a specific sector, but you have to be in the right role. i get my energy from people and i meet the most amazing people. i am lucky enough to be a ceo of a big global organization and i meet truly amazing people. francine: what kind of advice would you give to your younger self? be soi would say, don't shy, don't be so lacking in confidence. when i was offered my first promotion i said no. i had been working for 14 years and i said no. just think, it was my first time i was asked to manage one person and i said no because i did not think i was good enough. i just looked back, i hardly recognize that young woman. i really don't recognize her. what is wrong with her?

actually get to my employer, date written -- they did rescue me and give me that confidence. i did say, why did you start earlier? but i have had such a wonderful career that i have no regrets. francine: because of the politics we are living through, various western leaders, it is it up to private individuals and businesses, private companies to promote diversity more and promote lgbt? a bit of a void in terms of unified messages for the coming out from governments and their nations in many parts of the world at the moment. need aes seem to an business to step into that void. it is almost an expectation of younger generations. they see business as having much more of a role to play. absolutely in promoting

diversity. absolutely in making sure you have inclusive work laces. otherwise you won't attract the talent or the talent will not come. beale, thank you so much. inga: thank you. ♪

david: coming up on "bloomberg best," the stories that shaped the week in business around the world. turmoil in turkey. each day brings new twists as investors look on with alarm. yousef: the market reaction really tells a powerful story as to the insufficiency of the latest move. mohamed: turkey is trying to rewrite the crisis management chapter in the playbook for emerging markets. david: the u.s. and china resume talking about trade talks. cryptocurrencies go on another ride, and elon musk's plan to take tesla private puzzles the public.