(London, UK – Insurance News 360) – After extensive discussions with members of the Lloyd’s market, the Lloyd’s Market Association (LMA), the London & International Insurance Brokers’ Association (LIIBA) and the International Underwriting Association (IUA), Lloyd’s Corpoation will require syndicates to write at least 10 percent of risks electronically. By the fourth quarter, the requirement will be 30 percent, with other targets to come before the end of the fourth quarter.
This mandate is encouraged to speed the transformation from paper to digital. For managing agents who meet target requirements, members of the syndicate will be eligible for a rebate on their annual subscriptions. For those who don’t meet the target, additional fees will be required.
Lloyd’s Chief Executive Officer, Inga Beale, said: “We must ensure that Lloyd’s and the London market moves together and continues to prioritise its modernisation efforts. We have agreed the scope and requirements for the electronic placement mandate. Those that adopt electronic placement in line with the mandate will receive incentives, in recognition of their increased efficiency,” said Lloyd’s Chief Executive Officer Inga Beale. “Those that fall short will be required to contribute towards the costs of modernising the market. We have a system that works and that supports face-to-face negotiations. Adoption by the market will increase efficiency, reduce back office costs, and most importantly improve customer service.”
The electronic placing platform provided by PPL was launched in July 2016, initially for standalone Terrorism business. Today, 36 lines of business are available on the platform, with 29 brokers and 93 carriers signed up. Accident & Health goes live in April and the PPL Board is working with the market on agreeing suitable live dates for the remaining classes of business including Reinsurance and Aviation.