Lloyd’s has outlined changes to its operating model under a five-year competitiveness strategy announced in March.

All elements of oversight – including governance, performance, reserving and syndicate-level capital setting – will be brought under an “oversight and performance” function led by chief of market performance and strategy Rachel Turk.

“This is designed to make oversight more consistent, co-ordinated and predictable for managing agents, reducing unnecessary bureaucracy while maintaining the rigorous oversight that is the bedrock of the market’s reputation and competitive strength,” Lloyd’s said.

Chief of market oversight Caroline Sandeman-Allen will support the transition before leaving the organisation next year.

Lloyd’s will also introduce a global functional model that aims to deliver “greater consistency” in how it works in offices around the world.

“The new model will deliver increased scale benefits, with local leaders empowered to maximise the advantages of Lloyd’s while holding regulatory and strategic accountability.”

The capital modelling and aggregation teams will report to CFO Jim Bichard, and Boston Consulting Group MD and insurance practice partner Jacob Palmer has been appointed to the executive leadership team as chief strategy officer.

Lloyd’s CEO Patrick Tiernan says the changes are an “important first step in eliminating the unnecessary friction and complexity that can increase the costs of doing business at Lloyd’s beyond the central charge of 1%.

“I’m encouraged by the progress we have made on the strategy since March in terms of sharpening our financial edge and maximising our capital advantage.

“But we need to make Lloyd’s easier to work with and for.”