Lloyd's CEO Neal 'delighted' as carriers surpass e-placement targets in fourth quarter 2019

Specialist re/insurance marketplace Lloyd's of London saw a significant rise in the use of placing platform PPL during the last quarter of 2019 with majority of its in scope risks placed electronically. Lloyd’s chief executive John Neal said he was "delighted" with the results as e-placements are a key priority for the Future at Lloyd's strategy.

Latest market-wide data for submissions and risks placed electronically shows that Lloyd's Syndicates accepted 73 percent of in scope risks and 39 percent of submissions were electronic, while the use of PPL among the International Underwriting Association (IUA) companies rose to 61 percent (in scope risks) during the period. 42 percent of IUA companies measured met or exceeded the target of 80 percent or more.

The target for this quarter was to have submitted 15 percent of in scope risks and bound 70 percent through electronic placement.

The top five syndicates for placements included Pembroke Managing Agency Limited 1947, Asta Managing Agency Limited 3268, Catlin Underwriting Agencies Limited 2003, Sirius International Managing Agency Ltd 1945, and Starr Managing Agents Limited 1919.

The top five for submission included Ark Syndicate Management Limited 4020, Ark Syndicate Management Limited 3902, AEGIS Managing Agency Limited 1225, Asta Managing Agency Limited 3268, and Coverys Managing Agency Limited 1975.

Bronek Masojada, chair of the PPL Board said: “Market co-operation has always delivered the best results in London to make change happen. The fact that we are now seeing both submission and placement taking place electronically proves what brokers and underwriters can do by working together so everyone benefits from e-placement. PPL will continue to improve the platform for its users and the market is committed to getting more out of what we have today.”

John Neal, Lloyd’s chief executive, added: “I am delighted that we have hit all of our electronic placement targets, which are a key priority for us as part of the Future at Lloyd’s strategy. Digital access to Lloyd’s will make it simpler for our distribution partners to do business with us and to focus on what they do best, which is to provide valuable advice to our customers.”

Louise Day, IUA director of operations, commented: “Electronic placement in the company market is now approaching two thirds of in-scope risks processed and we have seen new IUA members adopting the technology in recent months. It is important that the success of PPL in 2019 is built upon to ensure the platform is fully utilised throughout the placement process from quote to bind.”

Christopher Croft, CEO of LIIBA, said: “We are enthusiastic proponents of electronic trading. The effort our leading members have committed to providing the backbone of PPL adoption is testament to that, and this data illustrates the efforts they are making every day to improve processes. We now want to see those efforts rewarded with tangible benefit for our clients and see a real drive to improve how we work and the platforms we work on.”

Sheila Cameron, CEO of the LMA, noted: “The latest figures reinforce what has been an impressive year for PPL in the volumes of submissions and, particularly, in-scope risks placed. The RFP process for the next version of PPL has commenced, and it promises significant system improvements and added functionality. Not only must this provide a better user experience but its successful delivery also underpins the ambitious aims of the Future at Lloyd’s Blueprint in delivering a data driven marketplace.”

According to Simon Matson, CEO of Gallagher’s broking and underwriting business in the UK, “the digitalisation of trading at Lloyd’s has changed significantly over the past 12 months, enhancing our ability to quote, negotiate, bind and endorse increasingly complex risks. At Gallagher we have made huge steps forward and in the last month achieved nearly 80% of London market risks being processed on PPL. For a business of our size and scale this is a great result.

“Making electronic placement the norm across the London market will be a crucial component of the work on the Future@Lloyd’s - streamlining the value chain and bringing customer benefits. For 2020 the focus will be on the use of quote and how we can work with underwriters to minimise turnaround time.

He added: “These are great steps forward, however I firmly believe technology cannot replace customer advocacy and human negotiation which is vital for the complex risks underwritten at Lloyds and as such relationships between brokers and underwriters remain the backbone of the London market.”