The market-wide data for risks placement on Placing Platform Limited (PPL) for the first quarter of official reporting, ending June 2018, released by the PPL Board, show that adoption targets have been exceeded. One hundred per cent of syndicates at Lloyd’s reported under the mandate, while approximately two thirds of International Underwriting Association (IUA) companies voluntarily reported their usage. The target was to have placed 10 per cent of in scope risks but, on average, over 16 per cent of risks were placed electronically. A guide to achieving adoption targets for Q3 and Q4 is available here.
Charts of anonymised individual businesses’ data have been published at: www.londonmarketgroup.co.uk.
|Lloyd’s||International Underwriting Association|
|Syndicates accepted 16.3% of in scope risks through electronic placement.||Members companies that reported accepted an average of 23% of in scope risks.|
|63% of syndicates met or exceeded the target.||70% of IUA companies that reported met or exceeded the target.|
|The highest level of adoption for a syndicate was 54% of all in scope risks.||The highest level of adoption for an IUA company was 75% of all in scope risks.|
|24% did not reach the target and 13% reported that they had no in scope risks during the period.||30% did not reach the target.|
Bronek Masojada, Chair of the PPL Board, said: “The London Market has clearly made a concerted effort to increase its usage of PPL in the last three months, and it is a positive sign that overall the minimum threshold has been exceeded. Inevitably, activity fluctuates with renewals but a nearly 50 per cent uplift between May and June is very encouraging.
“It is vital that we make London an easier place to do business with wide-spread market usage of an e-placement platform. By highlighting success amongst those businesses that have well-exceeded the targets, we hope to encourage a race to the top. In the second quarter report, we will increase the transparency with league tables of all participants.
“However, focussing on the placement is not enough. 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. If we don’t capture accurate data at the front end of the placement process and then the critical structured data at the end, we will only be doing part of the job we need to do.”
Shirine Khoury-Haq, Lloyd’s Chief Operating Officer and Sponsor of the London Market TOM programme, commented: “We are encouraged by the support and effort we have received so far which has resulted in the market exceeding the target set earlier in the year. Further adoption will help the market increase efficiency, reduce back-office costs and, most importantly, improve client service. We are using the feedback we have received to work with our syndicates, the Associations and our brokers to build on the momentum generated by these positive results.”
Louise Day, Director of Operations at the International Underwriting Association, said: “This analysis clearly demonstrates that the momentum building around PPL extends widely across all parts of the London Market. Unlike Lloyd’s there is, of course, no mandate for electronic placement in the company sector. IUA members, however, have demonstrated clear support for PPL and are recording some very encouraging rates of adoption.”
PPL is a core component of the London Market Target Operating Model.