The specialist Lloyd’s of London insurance and reinsurance marketplace has announced that it plans to proceed with electronic placements to increase efficiency in the market.
“The London Market has made great strides towards modernisation. We have invested time and money in the London Market Target Operating Model (TOM) programme and delivered systems that we know work. For example, over 15,000 risks have been bound to date on the electronic placing platform (PPL) and nearly 60% of the Financial and Professional Lines risks are being placed electronically,” said Inga Beale, Lloyd’s Chief Executive Officer (CEO).
Lloyd’s has said that it will “push ahead” with electronic placement to support face-to-face negotiations, increase efficiency in the marketplace, lower back office costs, and provide a better customer service.
“Adoption is now vital and it is happening but, in the case of electronic placement, it is not happening fast enough. Unless the market moves together it will not reap the benefits and reduce administration costs. Electronic placement will support face to face negotiation, further increase efficiency in the market, reduce back office costs and most importantly, improve customer service.
“Without higher levels of adoption throughout the market we put our investment to date at risk and we are in danger of seeing administration costs rise even higher. It is for this reason that Lloyd’s is proposing to mandate the use of electronic placement on a phased basis over time,” continued Beale.
The Lloyd’s market is set to hold a number of briefing sessions with the market to provide information about PPL, which will also explain how the electronic placement mandate could work and to collect market input.
Commenting on the news, Christopher Beazley, CEO of the London Market Group, said, “PPL is the world’s first market-wide, electronic placement platform in insurance and London is proud to be leading the way in driving efficiencies for our customers and our businesses. All our stakeholders are committed to building the momentum across the platform and this mandate by Lloyd’s will help drive that adoption.”