Lloyd’s of London Syndicates accepted 65% of in scope risks through electronic placement during the third quarter of 2019, while the use of Placing Platform Limited (PPL) amongst the International Underwriting Association (IUA) companies increased to 53%.
This is according to LMG’s latest market-wide data for risks placed electronically in Q3 2019. Data shows that 100% of Lloyd’s Syndicates reported under the mandate, with the target for this quarter being to have placed 60% of all in scope risks through electronic placement.
In Q2 2019, Syndicates accepted 60.2% of in scope risks, which compares with 45% in Q1 2019. At the same time, IUA companies signed up to PPL increased from an average of 32% to 51% of in scope risks.
Sirius International Managing Agency topped the adoption table at 83.16%, moving up from second Q2.
Allied World Managing Agency clocked the second highest adoption rate for the quarter with 77.45%, a significant rise from its tenth spot last quarter.
RenaissanceRe Syndicate Management shot up from 15th last quarter to third in Q3 with 76.71%.
Pembroke Managing Agency 1947 climbed ten places to fourth with 75.81% while Neon Underwriting dropped two places to fifth with 75.36%.
There were some dramatic changes to the adoption leaderboard during this period, with last quarter’s leader Markel International dropping down to 49th, with its adoption rate dropping 17%.
“The market is on track to place the majority of its business electronically but we cannot relax now,” explained Bronek Masojada, Chair of the PPL Board.
“The placing process has to start electronically – from submission, for us all to reap the full benefits of process improvement. The levels of submissions is increasing, but we need to hit our target of 15% in Q4 of this year. All markets need to work together on this next important phase.”
John Neal, Lloyd’s Chief Executive, added, “Through the Future at Lloyd’s we are building the most advanced insurance marketplace in the world. Digitalisation is key because it makes it simpler and more efficient for customers and market participants to trade.
“I’m pleased that the Lloyd’s market has so far surpassed every quarterly target for electronic placement. We need to continue building this momentum to ensure the same level of success in submission rates.”
Louise Day, IUA Director of Operations, commented, “The proportion of risks accepted via IUA members continues to rise and several companies are now placing considerable parts of their book via the platform. There is still scope for expansion, however, and year-end renewals present an opportunity for volumes to be increased significantly.”
Christopher Croft, CEO of LIIBA, said, “This set of data shows that the adoption of electronic placement in the London Market has come of age.
“Whether users are choosing PPL or one of the other platforms which are seeing sign up, they are looking for the solutions that suit their business model best, actively working to automate the low value activities and concentrating on where they can really make a difference for customers.”
Sheila Cameron, CEO of the LMA, noted, “It is satisfying to see continuing growth in adoption of PPL and that the number of in-scope risks placed electronically at Lloyd’s is ahead of target for the quarter.
“Our marketplace has gone further than ever before in making electronic placing a reality, but we still have much of the journey ahead of us.
“A commitment to invest in the next generation of PPL as part of Future at Lloyd’s and the evolution of a complex risk platform from a ‘document-centric’ to ‘data-first’ world, are fast approaching on the horizon and will bring new challenges and opportunities.”