He will take up his appointment, lasting three years, on April 1 and will replace David Hall.
Churchill is currently chairman of the National Employers Savings Trust and was formerly chief executive of UK, Irish and International Life at Zurich Financial.
Lord Turner, chairman of the FSA, says: “I am delighted Lawrence has agreed to serve as FSCS chairman. He will bring an invaluable set of skills and knowledge from his varied experience in the financial services sector over many years, which will only benefit the FSCS.”
He adds that Hall has made a significant contribution to the FSCS since being appointed chairman over six years ago, and that he wishes him well for the future.
Churchill says: “A huge increase in claims and compensation paid out in more recent years has created significant challenges for the FSCS, and has impacted on all of its stakeholders.
“I am grateful to David for his influence and contribution in steering the organisation to the levels of efficiency and responsiveness we see today.
“The FSCS will continue to play a vital role in providing confidence in the financial services sector this year and onwards.”
Hall adds: “I feel privileged to have been chairman of the FSCS since March 2006 and there have been many challenges in that time. I would like to thank all those who have been involved in taking the FSCS forward, including the board for their support and efforts during my chairmanship.
“I am confident Lawrence will benefit greatly from the ever growing support and contributions of everyone, as I am also sure that his experience and skills will prove invaluable to the FSCS.”