350% rise in London Market brokers using electronic placement

London Market brokers are increasingly embracing the use of electronic placement with the number of risks placed this way increasing by 350 percent in the past 12 months, according to data released by the Board of the London and International Insurance Brokers Association (LIIBA).

Placing Platform Limited, launched in 2016, is a new electronic platform launched to support a more flexible negotiation and faster placement. Some 20 brokers now use the platform.

“The number of risks bound by brokers has risen by 350% in the last 12 months,” said Christopher Croft, CEO of LIIBA. “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.

“As an association, we are monitoring levels of activity by firm and working with all our members to help them to understand the benefits of operating in a digital world. A year ago, only six brokers were on PPL, today we have 20 who are active on the platform. The top four brokers now only account for 63 percent of all risks placed - a clear indication that there is much greater traction across all sections of the market.”

Croft added: “The recent announcement that insurers exceeded their Q3 targets is evidence that broker adoption is outstripping the pace the market thought it could manage. 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.”