It looks like Placing Platform Limited (PPL) board chair Bronek Masojada does not want to lose momentum as far as electronic placement adoption is concerned.
“The market is on track to place the majority of its business electronically but we cannot relax now,” stated Masojada upon the release of market-wide data for risks placed electronically during the third quarter of 2019.
“The placing process has to start electronically – from submission, for us all to reap the full benefits of process improvement. The levels of submissions are increasing, but we need to hit our target of 15% in Q4 of this year. All markets need to work together on this next important phase.”
Third quarter figures show that Lloyd’s of London syndicates accepted 65% of in-scope risks while International Underwriting Association (IUA) companies signed up to PPL accepted an average of 53%. The top syndicate is Sirius International Managing Agency Limited 1945 with 83.16%.
The target for the period was to have placed 60% of in-scope risks through electronic placement.
“It is satisfying to see continuing growth in adoption of PPL and that the number of in-scope risks placed electronically at Lloyd’s is ahead of target for the quarter,” commented Lloyd’s Market Association chief executive Sheila Cameron.
“Our marketplace has gone further than ever before in making electronic placing a reality, but we still have much of the journey ahead of us. A commitment to invest in the next generation of PPL as part of Future at Lloyd’s and the evolution of a complex risk platform from a ‘document-centric’ to ‘data-first’ world, are fast approaching on the horizon and will bring new challenges and opportunities.”
Also happy with the numbers is London & International Insurance Brokers’ Association CEO Christopher Croft. He noted: “This set of data shows that the adoption of electronic placement in the London Market has come of age.
“Whether users are choosing PPL or one of the other platforms which are seeing sign up, they are looking for the solutions that suit their business model best, actively working to automate the low value activities and concentrating on where they can really make a difference for customers.”
Meanwhile IUA director of operations Louise Day believes that while the proportion of risks accepted via their members continues to rise and several firms are now placing considerable parts of their book through the platform, there is still room for expansion. Day is of the view that year-end renewals present an opportunity for volumes to be increased significantly.
“Through the Future at Lloyd’s we are building the most advanced insurance marketplace in the world,” asserted Lloyd’s chief executive John Neal. “Digitalisation is key because it makes it simpler and more efficient for customers and market participants to trade.
“I’m pleased that the Lloyd’s market has so far surpassed every quarterly target for electronic placement. We need to continue building this momentum to ensure the same level of success in submission rates.”
