LONDON (Reuters) ? Lloyd's of London denied an analyst's assertion that the insurance market operator was set to discuss proposals to force out individual investors and turn the market into a bourse of insurers backed by corporate capital.

Lloyd's, the world's oldest insurance market, moved quickly to reassure market investors and participants on Thursday that the a research report by boutique investment bank Keefe, Bruyette and Woods was incorrect.

Insurance analyst Chris Hitchings stated in the report that a high-ranking Lloyd's committee would discuss proposals on March 30 that could fundamentally change the face of the market.

Hitchings said the market's Franchise Board, which sets its future strategy, would review a proposal to scrap the method in which the market's underwriters raise capital each year from investors to back their business, known as the "annual venture".

If it gave up the annual venture, Lloyd's would make it difficult for individual investors, traditionally known as Names, to continue to put their money into the market.

Lloyd's could then begin the process of turning itself into a bourse, made up of insurers financed by long-term institutional investors, Hitchings said.

A Lloyd's spokesperson told Reuters, however, "There are no proposals on the table to scrap the annual venture or private capital or turn Lloyd's into a bourse.

"In fact, there is a strong market view that a broad capital base, including private capital, is valuable to Lloyd's," the spokesperson said.

Hitchings described Lloyd's current structure as essential.

"The participation of private capital through the 'annual venture' is not a costly anachronism but the essential driver of the efficient capital structure and the superior returns earned by these businesses," he said.

He warned that by abandoning its existing structure, Lloyd's might ultimately threaten its own existence, because it could be forced to take on more higher-risk business in order to compete with other centres such as Bermuda.

Lloyd's unveiled a three-year strategic plan in January aimed at ensuring its survival against increasing competition from overseas centres including Bermuda, which has attracted a string of new start-up insurers in recent years.

In it, Lloyd's set out objectives the market must deliver by 2008 to meet the growing threat to its business: The market should be easy to access and do business with, offer good, stable returns to investors and have a competitive cost base.

As part of the plan, Lloyd's said it would review the effectiveness of the annual venture.

The driver behind discussions on its capital base "seems to be the view in London that Bermuda is a more attractive place in which to base an insurance business," Hitchings said.

Lloyd's review of its financial structure is "unnecessary and damaging", Hitchings said.