Lloyd’s sets 2019 electronic placement targets

The Corporation of Lloyd’s has set the targets for electronic placement for the first half of 2019 following approval from the Lloyd’s board and council.

The Corporation of Lloyd’s has introduced a mandate for electronic placement in March 2018 requiring minimum targets for electronic placement of risks. From the end of the second quarter this year, each syndicate was required to have written no less than 10 percent of its risks electronically. This target rises by 10 percent each quarter until the fourth quarter of 2018 to reach 30 percent.

The mandate is designed to accelerate the market’s digital transformation to ensure the market realises the benefits of electronic placement and has already driven impressive adoption across the Lloyd’s market.

For the first quarter of 2019, each syndicate will now be required to have written no less than 40 percent of its risks using a recognised electronic placement system with the target increasing to 50 percent in the second quarter of 2019. A quote target will also be introduced in the second quarter, and all targets will now apply to both lead and follow business.

To support electronic risk placement adoption across the market, Lloyd’s brokers will be required to connect to a recognised electronic placement platform by June 1, 2019, according to a corporate statement. Lloyd’s will be working closely with the London & International Insurance Brokers' Association (LIIBA) to achieve this.

“Since we implemented this mandate across the Lloyd’s market, we’ve seen a marked increase in the adoption of electronic trading, which is fast-tracking our transformation,” said Lloyd’s chief operating officer, Shirine Khoury-Haq. “The latest developments, including quote targets and the Lloyd’s broker requirement, are essential next steps in our journey to digitise our market and to provide the best possible service to our clients. I am thankful to have so much support across the broking community and LIIBA in these efforts.”

By the end of the third quarter of 2018, 29.8 percent of ‘in scope’ contracts were placed electronically in the Lloyd’s market and almost reaching the fourth quarter target of 30 percent. Syndicates meeting and exceeding the targets will receive a rebate on their annual subscriptions.

The electronic placing platform provided by PPL was launched in July 2016, initially for standalone terrorism business. Today, all classes of business are available on the platform, with 58 brokers and 124 carriers signed up, according to Lloyd’s.

London & International Insurance Brokers' Association CEO, Chris Croft, commented: “LIIBA welcomes this development and the leadership shown by Lloyd’s. Overall the broking community is fully committed to electronic placement and the number of brokers on the platform has risen sharply in the last year. The association and our board members will continue to reach out to all sections of the market to help them to achieve both the mandate and the benefits of operating digitally.