In the News
Lloyd’s Confirms 2019 Electronic Placement Targets
To support electronic risk placement, Lloyd’s brokers need to connect to a recognized electronic platform by June.
- David Pilla
- February 2019
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.
The Corporation of Lloyd's said it confirmed first-half 2019 targets for electronic placement following approval from Lloyd's Board and Council.
For the first quarter, each syndicate will be required to have written no less than 40% of its risks using a recognized electronic placement system, with the target increasing to 50% in the second quarter, said Lloyd's in a statement.
A quote target will also be introduced in the second quarter, and all targets will now apply to both lead and follow business, Lloyd's said.
Lloyd's added to support electronic risk placement adoption across the market, Lloyd's brokers will be required to connect to a “recognized electronic placement platform” by June 1, 2019. “Lloyd's will be working closely with (London &International Insurance Brokers' Association) to achieve this,” the market said.
“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,” Shirine Khoury-Haq, Lloyd's chief operating officer, said in a statement. “The latest developments, including quote targets and the Lloyd's broker requirement, are essential next steps in our journey to digitize our market and to provide the best possible service to our clients.”
“LIIBA welcomes this development and the leadership shown by Lloyd's,” Chris Croft, LIIBA chief executive officer, said in a statement. “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.”
The mandate was issued in the first quarter of 2018 following discussions with members of the Lloyd's market, the Lloyd's Market Association, LIIBA and the International Underwriting Association, Lloyd's said. Lloyd's added the mandate is designed to accelerate the market's digital transformation to ensure the market realizes the benefits of electronic placement “and has already driven impressive adoption across the Lloyd's market.”
Lloyd's announced the mandate for electronic placement that will require Lloyd's syndicates to write at least 10% of their risks electronically each quarter for a total of 30% through the end of 2018.
Lloyd's noted by the end of the 2018 third quarter, 29.8% of “in scope” contracts were placed electronically in the Lloyd's market, nearly reaching the fourth-quarter target of 30%. “Syndicates meeting and exceeding the targets will receive a rebate on their annual subscriptions,” Lloyd's said.