Lloyd's updates electronic placement mandate as insurers 'exceed targets'
Lloyd’s of London has outlined a set of updated targets for its electronic placement mandate for the remainder of 2019 following "impressive adoption" across the specialist re/insurance market.
For the third quarter of 2019, each syndicate will be required to have written no less than 60 percent of its risks using a recognised electronic placement system with the target increasing to 70 percent in Q4.
The mandate was first issued in the first quarter of 2018 following discussions with members of the Lloyd’s market, the Lloyd’s Market Association (LMA), the London & International Brokers’ Association (LIIBA) and the International Underwriting Association (IUA).
It is designed to accelerate digital transformation and prepare the market for the future.
Lloyd's said the electronic placement mandate has driven "impressive adoption" across the market. By the end of the Q1 2019, 45 percent of ‘in scope’ contracts were placed electronically in the Lloyd’s market.
The target for this quarter was to have placed 40 percent of in scope risks through electronic placement. Eighty percent of syndicates met or exceeded the target and therefore qualified for a rebate on their annual subscriptions, it added.
Lloyd’s new chief operating officer, Jennifer Rigby, said: “Electronic placement allows Lloyd’s to simplify access and lower the costs of doing business, two objectives that are central to our strategy to build the future at Lloyd’s. We have exceeded our targets every quarter so far, which is excellent news and provides further evidence that we are already reshaping the market into a more future-focused platform.”
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