The Board of the London Market Group’s (LMG) Placing Platform Limited (PPL), an electronic placing platform created in July 2016 with the aim of increasing LMG efficiencies, has announced it’s exceeded its Q1 2018 adoption targets.
Syndicates accepted 16.3% of risks through electronic placement, higher than the 10% target. The highest level of adoption for a syndicate was 54% of all in scope risks, while 24% did not reach the target and 13% reported that they had no in scope risks during the period.
“The London market has clearly made a concerted effort to increase their usage of PPL in the last three months, and it is a positive sign that overall the minimum threshold has been exceeded,” said Bronek Masojada, Chair of the PPL Board.
“Inevitably, activity fluctuates with renewals but a nearly 50% uplift between May and June is very encouraging,” he added.
Additionally, member companies of the International Underwriting Association (IUA) accepted an average of 23% of in scope risks whilst 70% of IUA companies met or exceeded the target. The highest level of adoption for an IUA company was 75% of all in scope risks, while 30% did not reach the target.
Louise Day, Director of Operations at the IUA, commented, “This analysis clearly demonstrates that the momentum building around PPL extends widely across all parts of the London Market.
“Unlike Lloyd’s there is, of course, no mandate for electronic placement in the company sector. IUA members, however, have demonstrated clear support for PPL and are recording some very encouraging rates of adoption.”
Shirine Khoury-Haq, Lloyd’s Chief Operating Officer (COO) and sponsor of the London Market TOM programme, added, “We are encouraged by the support and effort we have received so far which has resulted in the market exceeding the target set earlier in the year.
“Further adoption will help the market increase efficiency, reduce back office costs and, most importantly, improve client service. We are using the feedback we have received to work with our syndicates, the Associations and our brokers to build on the momentum generated by these positive results.”
Commenting on the latest figures surrounding the adoption of PPL, the CEO of the London & International Insurance Brokers’ Association (LIIBA), Christopher Croft, highlighted that brokers are utilising PPL at all stages of the process.
“There is no doubt that the mandate from Lloyd’s has acted as a very positive catalyst and its leadership in creating the world’s first digital insurance market in London has been crucial in bringing all parties together to make London an easier place to do business.
“The global insurance market is challenging for everyone with brokers facing a range of regulatory and business issues. But our clients will not wait for the perfect solution; they want improvements now and PPL is a crucial stepping stone towards that.
“We now have over 40 brokers signed up to PPL. The number using the platform continues to grow each month, with nearly half of them now using the quote function right at the start of the process. By using the platform all through the value chain, clients and brokers will reap the maximum benefit possible from the market-wide adoption of this innovative technology.”