The risk advisory and broking firm Willis Towers Watson has revealed that, during Q3 2018, over 57% of eligible risks were placed through the London Market Group’s (LMG) Placing Platform Limited (PPL) across all lines of business, with certain lines of business regularly exceeding 75% of eligible risks.
PPL is a core component of the London Market Target Operating Model (TOM), the market modernisation initiative set out by the LMG.
According to the data released today by WTW, the firm’s PPL volumes have increased dramatically over the past year, as more risks are placed in each eligible line of business and new lines come into scope.
The company has confirmed that between October 2017 and October 2018, its placement volumes more than tripled.
This announcement follows the release of market wide data by the Board of PPL for risks placed electronically during the third quarter of 2018, which showed a steady increase in the proportion of syndicates adopting the platform
The data showed that take-up exceeded the Q3 target of having 20% of in scope risks placed through electronic placement for syndicates at Lloyd’s and International Underwriting Association (IUA) companies.
WTW data shows that it’s a market leader in its use of PPL’s submissions. In October 2018, the firm’s PPL activity accounted for more than 10% of all risks and endorsements bound and nearly 60% of all submissions presented in the London Market.
“It is vitally important that PPL adoption continues to grow, and quickly,” said Nicolas Aubert, Head of Willis Towers Watson in Great Britain.
“We fully support the idea of transparent league tables to encourage greater use, which is why we have decided to publish our own adoption figures and also support LIIBA’s efforts to develop a broker league table next year.”
A breakdown by line of business shows that the highest PPL use among the firm’s major lines is in its Financial Lines business, with consistently more than 80% of all eligible risks being placed on PPL.
“Across the industry the number of risks placed has nearly tripled in the past year and the number of broking firms binding risks has increased by nearly five times, so things are increasing steadily,” added Aubert.
“The broking community is enormously important to the success of PPL. All risk transactions start with the broker so, to a great extent, it is the broker that determines whether the process is electronic or paper-based.”
“It is clear that, while the biggest broking firms dominated PPL use to start with, the rest of the broking community is now coming online and the volume of electronic placements is rising significantly.”
“Ultimately the end goal has to be for underwriters and brokers to reach full adoption. Of course there are challenges to overcome but with the right organisational mind-set this is a highly achievable goal.”
