London and International Insurance Brokers’ Association (LIIBA) said it is determined to see electronic placement as the “predominant distribution tool” in the London insurance and reinsurance market by the beginning of 2019.
Christopher Croft, Chief Executive Officer (CEO) of LIIBA, explained that the organisation is, “Determined to see PPL become the predominant distribution tool in the market by the start of 2019. PPL is all about improving our approach to placing and reducing our reliance on paper – allowing us to focus on the face to face negotiations for which this market is renowned.
“There are many myths about the threat of e-placement, so we will shine a light on the significant service improvements it will allow us to deliver to our clients and the very real cost savings that PPL will deliver across the value chain.”
This is all part of LIIBA’s mission for 2018, as the organisation looks to “ensure that London remains where the world wants to do business by improving its competitive position.”
For 2018 LIIBA said it will focus on some key initiatives, one of which is encouraging the use of the electronic placement platform (PPL) initiative, which it sees as a key way to ” make London an easier place to do business.”
The only question on PPL is whether the platform will always be the best place to place and transact reinsurance business, or whether the current insurtech wave will result in other companies offering global electronic risk trading and placement platforms in years to come.
London should remain open to the possibilities that other technology could emerge which is better suited to global risk transfer, as localised markets will always become less important in an increasingly networked world.
Aside from that, Brexit will be a focus, as LIIBA looks to highlight, “the need for contract continuity and to ensure that EU clients can still access the London Market.”
Croft explained, “Much attention has focussed on the decisions of underwriting firms on how they will navigate a post-Brexit marketplace. However, the broking industry also faces major challenges and we are working closely with members to help them make the right contingency plan to protect the interests of their clients. For example, it is critical that we ensure that contracts where the period of insurance runs over the date when the UK leaves the EU remain serviceable.”
LIIBA, a trade body founded in 1910, represents Lloyd’s insurance and reinsurance brokers which contribute over 95% of the London Market’s business.