The Lloyd’s of London insurance and reinsurance marketplace has provided another update on its requirements for the use of electronic placements this year.
For Q2 and Q3 of this year, syndicates will now have to adhere to an electronic response target of 60% when replying to submissions and quotes from brokers.
Details of the target for the fourth quarter are due to be announced in September.
An electronic response is a response in relation to a proposed in-scope piece of business that has been made through the same recognised electronic system that issued the submission.
Members of a syndicate may qualify for a partial rebate of annual subscriptions for 2021 if all of the placement and submission targets in 2021 are met.
Lloyd’s previously announced that it was planning to increase the target on risks bound for all classes to 90% by Q2 2021, as part of its Electronic Placement Mandate.
The electronic placement target had been set 80% of risks bound throughout 2020, and will remain so during the first quarter of this year. But it will be raised to 90% in the second quarter and will be maintained at this level through to the end of the year, Lloyd’s has now confirmed.
Electronic placement has been a key pillar of the Future at Lloyd’s modernization program, and the challenges of the COVID-19 pandemic this year have only emphasized the importance of digital capabilities in the marketplace.
Lloyd’s first introduced a mandate for electronic placement for syndicates in 2018. Initially, and from Q2 2018, the mandate required all syndicates to write at least 10% of their risks electronically, rising to 20% in Q3 and 30% in Q4.
In July of 2019, the marketplace then outlined a set of updated targets for its electronic placement mandate, which meant that from the third-quarter of 2019, each syndicate would be required to have written no less than 60% of its risks using a recognised electronic placement system, with the target rising to 70% in Q4. The target was later upped to 80% beginning in January 2020.