Category: Lloyd's market · Reviewed by Jake Leat, Associate Director · Last reviewed 2026-06-05
The Lloyd’s franchise board — formally the Council of Lloyd’s — is the principal governance body of the Society of Lloyd’s. It is responsible for the regulation and oversight of the Lloyd’s market, the approval of managing agents and members, and the setting of strategic direction for the Society as a whole.
Category: Lloyd’s market Also known as: Council of Lloyd’s, Lloyd’s Council, Franchise Board Related concepts: Lloyd’s of London, Lloyd’s Performance Management Directorate, Lloyd’s chain of security
The Council of Lloyd’s is constituted by the Lloyd’s Act 1982 [1]. It comprises a mixture of working members (drawn from the underwriting and broking community), external members and nominated members appointed by the Council with the consent of the Governor of the Bank of England. The Council is chaired by the Chairman of Lloyd’s.
The ‘franchise board’ terminology emerged in the early 2000s when Lloyd’s adopted the conceptual framework of operating a franchise — the Lloyd’s name, brand and infrastructure being made available to managing agents and members under defined regulatory conditions. The Franchise Performance Directorate (now the Performance Management Directorate) was created to operate the franchise oversight function.
The Council exercises powers under the Lloyd’s Acts 1871–1982 and the bylaws made under those Acts. It is also accountable, through the Society of Lloyd’s, to the PRA and FCA under the FSMA 2000 framework, as well as to the membership and to the wider Lloyd’s market.
The Council delegates day-to-day operational responsibility to the executive of Lloyd’s — the CEO of the Society and the senior management team. Strategic decisions, regulatory bylaws and material approvals are reserved to the Council.
Recent strategic initiatives include the Future at Lloyd’s programme (digitisation, modernisation), the Blueprint Two market modernisation programme (Velonetic, PPL), the Lloyd’s Sustainability initiative and ongoing work on culture and conduct following the 2019 Bloomberg investigation into workplace behaviour at Lloyd’s.
For Apex clients the Council’s decisions affect the operating environment for Lloyd’s syndicates — including capacity controls, performance reviews, conduct standards and digital infrastructure — and through that, the placement and pricing of London market business.
An illustrative example: the Council of Lloyd’s approves the annual market business plan, setting the aggregate market capacity at (say) £53bn of gross written premium for 2024 against the prior year’s £52bn. The Council also approves changes to the bylaws (such as updates to the membership criteria or to the conduct and culture framework) following consultation with the market.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-05. Next review: 2026-12-05.
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