Syndicates accept 30% of risks electronically in Q3
Syndicates at Lloyd’s have accepted 29.6 percent of in scope risks through electronic placement in the third quarter of 2018, exceeding the target of 20 percent, according to the board of PPL (Placing Platform Limited).
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. Further targets will be confirmed prior to the end of the period.
In the third quarter of 2018, 71 percent of syndicates met or exceeded the target set for the period while 12 percent did not reach the target and 17 percent reported that they had no in scope risks during the period.
One hundred percent of syndicates at Lloyd’s reported under the mandate.
Bronek Masojada, chair of the PPL Board said: “We have always wanted to celebrate success and our adoption table is about a race to the top. We hope businesses will be proud of what they have achieved in the last six months. The fact that the market has, as a whole, significantly exceeded the target set is hard evidence that many in the market are taking the challenge of digitalisation very seriously.
“There is no doubt that most focus is still in the latter stages of the placement process or beyond. If you look at endorsement activity, brokers have saved over 50,000 visits to underwriters that have not been required because of PPL – releasing time for more valued added activities. But we want to get it right, right from the start of the value chain – at submission, and there is still a long way to go on those metrics.
Quotes and submissions are rising but more slowly than firm orders, risk bound or endorsements. Accurate data right from the start is the critical path to success.”
Shirine Khoury-Haq, Lloyd’s chief operating officer, added: “I am pleased to see that momentum continues to build around PPL adoption and Lloyd’s has again significantly exceeded its quarterly targets. The impressive adoption of electronic placement just goes to show that market participants are committed to transforming the way the London market operates. These actions, which target not only efficiency improvements but also help to further enhance our customer value proposition, are critical to ensure that London remains the global hub for re/insurance.”
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