British insurance and reinsurance market Lloyd’s of London said on Friday that it will simplify its governance structure by merging its two existing boards into one, as it attempts to modernise to fend off competition from cheaper rivals.
United Kingdom-based, 330-year-old Lloyd’s, which has 99 syndicate members offering insurance in specialist areas from ships to sculptures and which conducts much of its business face-to-face, is planning to move onto electronic exchanges and make it quicker and cheaper to set up a syndicate.
Lloyd’s, which employs nearly 50,000 people, is also attempting to improve its culture and conduct in the market, as it has come under the gaze of regulators following accusations of sexual harassment and daytime drinking.
“We need to make our governance structures as efficient as possible,” Lloyd’s Chairman Bruce Carnegie-Brown said in a statement, adding that the new structure “will combine robust and accountable governance with the ability to make swift decisions when necessary”.
The Lloyd’s Franchise Board, which had responsibility for the day-to-day running of the market, will be wrapped into its Council from June 1, 2020, to form a single 15-member governing body, it said.
The Lloyd’s’ nominations and governance committee is working with Carnegie-Brown to identify six independent members of the board from among existing members, it said, while an election for six market representative members will take place in April-May of 2020.