Adoption of the London Market Group’s (LMG) Placing Platform Limited (PPL) has increased significantly among brokers over 2018, according to new data from the Board of the London and International Insurance Brokers Association (LIIBA).
The number of risks bound by brokers on the electronic placing platform rose by around 350% over the last 12 months, LIIBA noted.
“We are seeing more risks placed by more brokers across more risk classes – all strong evidence that electronic placement is being adopted more widely, and the positive effect of our Board members’ implementation plans,” said Christopher Croft, Chief Executive Officer (CEO) of LIIBA.
LIIBA monitored levels of PPL activity by firm and worked with its members to promote the benefits of further integrating digital capabilities into their business.
20 brokers are now active on PPL (up from four a year ago) and LIIBA found that the top four brokers now only account for 63% of all risks placed, indicating that there is much greater traction across all sections of the market.
The Association’s analysis comes after the Board of PPL announced it had exceeded its take-up target of having 20% of in scope risks placed through electronic placement by the end of Q3.
“The recent announcement that insurers exceeded their Q3 targets is evidence that broker adoption is outstripping the pace the market thought it could manage,” Croft continued. “This is especially pleasing given that it has come at a time of almost unprecedented activity for brokers with Brexit; the FCA Wholesale Brokers Market Study, implementation of Insurance Distribution Directive and the incoming Senior Managers and Certification Regime.”
“That PPL has retained its status as a key priority amongst all of this is testament to our Members’ commitment to making London an easier place to do business for our clients,” he added.
PPL is a core component of the London Market Target Operating Model (TOM), the market modernisation initiative set out by the LMG.
