The Board of Placing Platform Limited (PPL) has released market wide data for risks placed electronically during the third quarter of 2018, which shows a steady increase in the proportion of syndicates adopting PPL.
The data shows 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.
Lloyd’s syndicates accepted an average of 29.6% of in scope risks over Q3, with 71% of syndicates meeting or exceeding the PPL adoption target. However, 12% did not reach the target and 17% had no in scope risks during the period.
The data showed that the top five syndicates in terms of PPL adoption were Beazley s3623, Aegis s1225, Allied World s2232, Apollo s1969 and Blenheim s5886.
Meanwhile, IUA companies signed up to PPL accepted an average of 29% of in scope risks, with 58% of IUA companies meeting or exceeding the target.
PPL is a core component of the London Market Target Operating Model (TOM), the market modernisation initiative set out by the London Market Group (LMG).
We have always wanted to celebrate success and our adoption table is about a race to the top,” said Bronek Masojada, Chief Executive Officer (CEO) of Hiscox and Chair of the PPL Board. “We hope businesses will be proud of what they have achieved in the last six months. The fact that the market has, as a whole, significantly exceeded the target set is hard evidence that many in the market are taking the challenge of digitalisation very seriously.”
“There is no doubt that most focus is still in the latter stages of the placement process or beyond,” Masojada continued. “If you look at endorsement activity, brokers have saved over 50,000 visits to underwriters that have not been required because of PPL – releasing time for more valued added activities.
“But we want to get it right, right from the start of the value chain – at submission, and there is still a long way to go on those metrics. Quotes and submissions are rising but more slowly than firm orders, risk bound or endorsements. Accurate data right from the start is the critical path to success.”
Shirine Khoury-Haq, Lloyd’s Chief Operating Officer, also commented: “I am pleased to see that momentum continues to build around PPL adoption and Lloyd’s has again significantly exceeded its quarterly targets. The impressive adoption of electronic placement just goes to show that market participants are committed to transforming the way the London market operates.”
“These actions, which target not only efficiency improvements but also help to further enhance our customer value proposition, are critical to ensure that London remains the global hub for re/insurance,” Khoury-Haq added.
Finally, Louise Day, Director of Operations at the IUA, stated: “The number of risks accepted via PPL continues to grow across the company market with several firms doubling their trade on the platform since the previous quarter. IUA members comprise many different business models and processing arrangements, yet support for PPL is widespread with adoption rates matching those achieved by Lloyd’s managing agents.”
