Reinsurance News

Lloyd’s updates electronic response targets

5th March 2021 - Author: Matt Sheehan

The Lloyd’s of London insurance and reinsurance marketplace has provided another update on its requirements for the use of electronic placements this year.

lloyds-underwriting-roomFor 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.

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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.

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