Lloyd’s PPL reveals e-placement adoption rates for 2019 for syndicates
Lloyd’s has heralded a strong start to 2019 for the use of e-placement in the market but also noted that the rate of growth is flattening and warned against complacence at a time when the market must find ways to reduce costs and become more efficient.
Liberty Managing Agency 4472, Allied World Managing Agency 2232, Pembroke Managing Agency 1947, Capita Managing Agency 1492 and Newline Underwriting Management 1218 were named as the syndicates to have adopted e-placements the quickest; at the other end of the list, Catlin Underwriting Agencies 3002 and Chubb Underwriting Agencies 2488 were named and shamed as having the worst adoption rates of e-placements.
The figures were released by the board of Placing Platform Limited (PPL), which released the market wide data for risks placed electronically during the first quarter of 2019. One hundred percent of syndicates at Lloyd’s reported under the mandate, and figures for almost all International Underwriting Association (IUA) companies signed up to PPL have also been analysed.
It said the target for this quarter was to have placed 40 percent of in scope risks through electronic placement. In total, 78,000 risks have been bound electronically.
In Lloyd’s overall, syndicates accepted 45 percent of in scope risks, 80 percent of syndicates met or exceeded the target, but 11 percent did not reach the target and 9 percent reported that they had no in scope risks during the period.
IUA companies signed up to PPL accepted an average of 32 percent of in scope risks and 38 percent of IUA companies measured met or exceeded the target.
Bronek Masojada, chair of the PPL Board, said: “2019 has seen a strong start for e-placement across the market. We have had a sharp increase in the numbers of brokers signing up and risks bound across all lines of business have risen this quarter. Nevertheless, the rate of growth is flattening and we cannot afford to get complacent if we want to reap the benefits of time and resource everyone has invested so far.
“The key to continued progress will be the market working as a team, with collaboration and participation of all the market firms, both brokers and underwriters. This will ensure that any operational issues are resolved, key business partners are brought on board and the platform continuously improved.”
John Neal, Lloyd’s CEO, added: “Simplifying access and lowering the costs of doing business at Lloyd’s are central to our strategy to build the future at Lloyd’s. The fact that the numbers of syndicates and their levels of activity in electronic placement are growing every quarter is evidence that we have the foundations in place to reshape the market into a future-focused and highly responsive platform which provides better value and support to the changing and diverse needs of our global customers.”
Dave Matcham, CEO of the IUA, commented: “IUA members are continuing to support the roll out of PPL and in the first quarter we have seen a number of new affiliate companies signing up to the platform.
Having been established for Brexit purposes these may not yet be fully operational whilst other areas have seen a natural drop from the large amounts of year end business placed during the fourth quarter. There is, however, a strong desire to see the platform fully utilised from quote to bind in order to secure maximum benefits.”
Christopher Croft, CEO of LIIBA, said: “Brokers are embracing e-placement with increasing enthusiasm. and we are seeing that reflected in the number of broking businesses who have signed up. We are also seeing more risks placed by more brokers across more risk classes – all strong evidence that electronic placement is being adopted more widely. The top four brokers now only account for 42% of all risks placed - a clear indication that there is much greater traction across all sections of the market.”
