Adoption of the London Market Group’s (LMG) Placing Platform Limited (PPL) has been widening significantly among re/insurance brokers, according to Christopher Croft, Chief Executive Officer (CEO) of the London & International Insurance Brokers’ Association (LIIBA).
Croft noted that the number of brokers using PPL has increased by 25% over the last few months, with sign up and usage expected to continue to grow at a steady pace.
His comments come after data for the third quarter of 2018 was released by the Board of PPL, which showed a steady increase in the proportion of Lloyd’s syndicates and International Underwriting Association (IUA) companies placing risks electronically.
The Board found that PPL take-up was ahead of its 20% target, with Lloyd’s syndicates accepting an average of 29.6% of in scope risks over Q3 and IUA companies around 29%.
PPL is a core component of the London Market Target Operating Model (TOM), the market modernisation initiative set out by LMG.
“It is very good news that the underwriting market is well ahead of its targets for this quarter in terms of placing risks electronically,” Croft said. “The broker response has been equally strong, and the number of brokers has increased by 25% in the last three months with nearly 60 broking houses now signed up, representing 90% of the market’s capacity.”
Croft also observed that LIIBA has seen activity from a much wider spread of brokers, with the proportion of business being undertaken by the top four broking houses decreasing from 83% to 63%.
He claimed that this was “a clear indication that we have created a tool that is gaining traction much more widely across all sections of the market.”
“We expect sign up and usage to continue to grow, but most importantly that brokers are using it at all stages of the value chain,” Croft added. “Nearly half of them are now using the quote function right at the start of the process, and the speed of endorsements has been revolutionised – taking minutes now rather than hours.”
