- Lloyd's announces key appointments for the governance and delivery of the Future at Lloyd’s Blueprint One programme together with confirmation of the raising of £300m of senior debt to fund the transformation
- Insurance Europe new publication-"Why Insurance" urges policymakers to make sure the industry’s special features are taken into account when developing insurance regulation
- Geneva Association Women in Insurance Award launched
- CII PublicTrust survey indicates UK consumers want action on renewal pricing
- Willis Towers Watson launches ResQ Financial Reporter, an out-of-the-box software solution designed to help P&C insurers implement IFRS 17
- Duck Creek announces that four leading investment firms have invested $120m in the company
- FRISS to partner with National Insurance Crime Bureau(NICB) expired
- City Insurance shows impressive growth expired
- Canopius appointsTongue as underwriter, trade & political risk expired
- Hannover Re and Global Parametrics in partnership with BMZ and KfW to form Natural Disaster Fund(NDF) Deutschland expired
- Victor Insurance Holdings announces approval from Lloyd’s to establish Victor Syndicate 2288 and commence underwriting effective 1st January expired
- BMS announces appointments to its US reinsurance team expired
14th August 2019
PPL usage ahead of target in second quarter
Market-wide data has been released for risks placed electronically over PPL during the second quarter of 2019. 100% of syndicates at Lloyd’s reported under the mandate, and figures for almost all IUA companies signed up to PPL have also been analysed. The target for this quarter was to have placed 50% of in scope risks through electronic placement.
Lloyd’s Syndicates accepted 60.2% of in scope risks.
International Underwriting Association(IUA) companies signed up to PPL accepted an average of 51% of in scope risks
Lloyd’s syndicate adoption table.
The top five syndicates are:
Markel International Syndicate Limited 3000 77.16%
Sirius International Managing Agency Limited 1945 76.84%
Neon Underwriting Limited 2468 75.54%
Asta Managing Agency Limited 3268 74.71%
Newline Underwriting Management Limited 1218 72.79%.
Bronek Masojada, chair of the PPL Board, comments “These numbers are a great success for everyone in the market and should give us all tremendous confidence that the London Market has genuinely adopted electronic placement. We got here through a programme of steady and systematic action to change the way the market works. The next step is to build the same success in submissions as we have in risks bound, and our goal is to hit a target of 10% for submissions in Q4 of this year. We will be taking the same approach to this work-collaborating widely across underwriting and broking communities and taking one step at a time to gradually increase the flow of business that goes through the platform from start to finish.”
John Neal, Lloyd’s chief executive, added “These numbers are encouraging and demonstrate a market-wide commitment to modernise the way we do business at Lloyd’s. We must continue with this momentum as well as look to achieve the same success in submission rates.”
Louise Day, IUA director of Operations, said “The latest quarter shows a significant rise in the use of PPL amongst IUA companies from 32% to 51% of in scope risks. Some new members have recently taken up e-placement via the platform and have really hit the ground running. The introduction of the broker mandate has also made it more likely that more risks are being presented electronically to our members.”
Christopher Croft, ceo of LIIBA, comments “There are now well over 100 broking businesses signed up to electronic placement, representing the vast majority of premiums placed in London–and 55% of risks bound are outside the Big Three brokers. This performance demonstrates that PPL has developed into a significant asset for the market as a whole. Now we need all market participants to continue to work collectively to ensure that it fulfills its undoubted potential to deliver a simpler, more efficient way for our policyholders to access our products and services.”
Sheila Cameron, ceo of the Lloyd's Market Association(LMA), notes "These figures are highly encouraging. It is critical that we build on the momentum that is seeing record numbers of risks being placed on PPL by working together as a market to understand and overcome any obstacles that remain to adopting electronic placing.
"The question is no longer 'will the market embrace electronic placing?' but 'what does the platform of tomorrow look like?' It is important to remind ourselves that this is a journey and we will not arrive at the final destination immediately. We must continue to 'learn as we go', so that we can continuously improve the platform and achieve the higher volumes that will enable us to fully realise the benefits in terms of the product we offer our clients, today and in the future."
Mark Eastham, ceo, Avantia, comments “The fact that Lloyd’s of London has taken such a clear step in this direction is indicative of where the industry is heading. The move has been triggered by losses incurred by natural catastrophes, and with climate change fast becoming a reality, firms need to manage risk much more effectively. Just two weeks ago homes in the Peak District were evacuated due to flood risks, and it's mid-summer! Firms have to adapt to the new insurance landscape as it becomes increasingly non-standard.
Profits are being squeezed and the property insurance industry as a whole is looking to make savings and streamline business. Competitive pricing is essential. Underwriters can no longer rely on face-to-face negotiating to keep pace with challengers who are doing business based on quality data. The industry needs to learn from this automated approach and employ new data-driven techniques to achieve optimal pricing. It's no longer a nice to have but a crucial part of profitability. Fundamentally, those who embrace an automated, data-driven & machine learning based system are more likely to be ahead of the curve.”
Ross Mayne, ceo, Munich Re Automation Solutions, added “This is great progress, but the industry as a whole can be doing much more to employ advanced technology to improve operations, deal making and underwriting which can have a huge and positive benefit on the end customer experience. The industry should be ambitious in the technology it uses and plans to deploy– AI, Machine Learning and more are delivering real business benefits to those progressive enough to use it. Technology can revolutionise this industry which has historically been slow to keep up with levels of electronification in financial services. Now is the time to move forwards.”
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