It’s been a British institution for hundreds of years, but the UK Government believes it’s time Lloyd’s took another step towards modernising its practices. It has put forward proposals to shake up the market’s governance arrangements.

A consultation document removes the requirement for the Governor of the Bank of England to approve appointments to the Lloyd’s Council.

The Government also proposes removing the restriction requiring managing agents to only accept business from a Lloyd’s broker. It also wants to change the way potential conflicts of interest are managed.

Treasury Secretary Angela Eagle says the reforms complement the reforms Lloyd’s has already put in place and will help the market continue to compete in the global insurance sector.

The reforms come just weeks after Lord Levene was controversially reappointed as Chairman for an unprecedented third term, despite being expected to stand down in November.

Reports then surfaced that a rebel group at Lloyd’s was challenging the Chairman’s authority after not being consulted on proposed changes to the Lloyd’s Act.

The consultation closes on May 30. It will form the basis of a legislative reform order if approved.