The Board of Placing Platform Limited (PPL) has released new data for the fourth quarter of 2018 showing that adoption levels among both Lloyd’s syndicates and International Underwriting Association (IUW) companies exceeded targets.
Syndicates accepted an average of 39% of in scope risks through electronic placement in Q4, while IUW companies signed up to PPL accepted 41%, both beating the Board of PPL’s target of 30%.
Q4 data shows that 76% of Lloyd’s syndicates met or exceeded the target, while 7% did not reach the target and 17% reported that they had no in scope risks during the period.
The top five syndicates were Beazley s3623, Hiscox s3624, Aegis s1225, RenaissanceRe s1458 and Asta s5886.
In terms of IUA companies, 53% of those measured met or exceeded the Q4 PPL target, according to the Board’s report.
100% of syndicates at Lloyd’s reported under the mandate, which also requires that Lloyd’s pay partial rebates on annual subscriptions for 2018 in the first quarter of 2019.
These will be received by 63 Lloyd’s syndicates, while additional fees will be paid by seven syndicates. The total net amount paid in rebates was £12 million.
“The fact that both volumes and adoption have risen significantly is great news for the market as a whole,” said Shirine Khoury-Haq, Chief Operating Officer at Lloyd’s.
“I am pleased to see that Lloyd’s has again significantly exceeded its quarterly targets and that firms are being rewarded for their success with rebates on their subscriptions that represent meaningful sums of money,” she continued.
“All of this is hard proof that, as a market, we are committed to making London as easier place to do business with simpler and more efficient processes, reinforcing our position as a global hub for re/insurance.”
Bronek Masojada, Chair of the PPL Board, also commented on the results: “This is another very strong set of numbers, demonstrating that all parts of the market have really committed time and energy to electronic placement. The fact that the market bound 37,537 risks on PPL by the end of 2018 is hard evidence that the challenge of digitalisation is being taken very seriously and I would like to thank all involved for their efforts.”
“2019 will see PPL investing resources in continually improving the functionality of the platform and helping market practitioners to get the best from it,” he added. “The aim is to make the ongoing process of adoption as seamless as possible for brokers and underwriters.”
Louise Day, Director of Operations at the IUA, further stated: “The latest figures again show that progress towards PPL adoption is at least as rapid across the London company sector as it is amongst Lloyd’s managing agents.
“43% of our reporting members placed half of all eligible risks on PPL in the quarter. This is significant because there is no mandate for companies and so their enthusiasm for the platform demonstrates a clear belief that it will add value to their business operations.”
Finally, Christopher Croft, Chief Executive Officer (CEO) of LIIBA, said: “Broker adoption is critical to the carriers being able to hit their targets and we are delighted that there are now 46 broking firms live on the platform, and that this number is growing significantly month on month. As a community, we are keen to be as transparent as possible on our performance in e-placement.
“Before Christmas, PPL published broker by broker data on adoption rates. This has been supplemented by individual announcements by some of our members. However, the way in which each broker calculates its overall pool of relevant risks makes league tables based on percentage take up challenging. Nevertheless, we do continue to seek ways in which we can progress reporting.”
PPL is a core component of the London Market’s Target Operating Model, which is looking to introduce more efficient ways to transact insurance and reinsurance business in the London market.