To support electronic risk placement adoption across the market, Lloyd’s brokers will be required to connect to a recognised electronic placement platform by 1 June 2019. Lloyd’s will be working closely with LIIBA to achieve this.
Lloyd’s Chief Operating Officer, Shirine Khoury-Haq, said: “Since we implemented this mandate across the Lloyd’s market, we’ve seen a marked increase in the adoption of electronic trading, which is fast-tracking our transformation. The latest developments, including quote targets and the Lloyd’s broker requirement, are essential next steps in our journey to digitise our market and to provide the best possible service to our clients. I am thankful to have so much support across the broking community and LIIBA in these efforts.”
London & International Insurance Brokers' Association Chief Executive, Chris Croft, said: “LIIBA welcomes this development and the leadership shown by Lloyd’s. Overall the broking community is fully committed to electronic placement and the number of brokers on the platform has risen sharply in the last year. The Association and our board members will continue to reach out to all sections of the market to help them to achieve both the mandate and the benefits of operating digitally.”
The mandate was issued in the first quarter of 2018 following discussions with members of the Lloyd’s market, the Lloyd’s Market Association (LMA), the London & International Brokers’ Association (LIIBA) and the International Underwriting Association (IUA). It is designed to accelerate the market’s digital transformation to ensure the market realises the benefits of electronic placement and has already driven impressive adoption across the Lloyd’s market.
By the end of the Q3 2018, 29.8% of ‘in scope’ contracts were placed electronically in the Lloyd’s market and almost reaching the Q4 target of 30%. Syndicates meeting and exceeding the targets will receive a rebate on their annual subscriptions.
The electronic placing platform provided by PPL was launched in July 2016, initially for standalone Terrorism business. Today, all classes of business are available on the platform, with 58 brokers and 124 carriers signed up.