Lloyd’s will merge its council and Franchise Board from June under a new arrangement to simplify its governance and improve efficiency.

The decision, taken after five months of consultation, will be put in place amid wider proposed changes to overhaul the market’s operations through technology and innovation as it faces increased competition.

“By creating a single governing council, Lloyd’s will combine robust and accountable governance with the ability to make swift decisions when necessary,” Chairman Bruce Carnegie-Brown said.

The revised single governing council will include 15 members, made up of six that are nominated, six elected by the market and three executives.

Currently, the 13-member Franchise Board manages all the affairs of the corporation and directs the business of insurance at Lloyd’s, while the 15-member council is responsible for ensuring the Society of Lloyd’s acts in accordance with government legislation.

Mr Carnegie-Brown chairs both the council and board and John Neal is Executive Director and CEO.

Meanwhile, ratings agency AM Best has issued a new report on the London market suggesting that mergers, coupled with the increasing take-up of technology and a concerted push to drive down costs is resulting in a “blurring” of the traditional lines between insurers, brokers and reinsurers.

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