Lloyd's has announced plans to push ahead with electronic placement to support face to face negotiation, further increase efficiency in the market, reduce back office costs, and improve customer service.
Lloyd’s CEO, Ms Inga Beale, said that Lloyd’s is proposing to mandate the use of electronic placement on a phased basis over time.
She said: “The London Market has made great strides towards modernisation. We have invested time and money in the London Market Target Operating Model (TOM) programme and delivered systems that we know work. For example, over 15,000 risks have been bound to date on the electronic placing platform (PPL) and nearly 60% of the Financial and Professional Lines risks are being placed electronically.
“Adoption is now vital and it is happening but, in the case of electronic placement, it is not happening fast enough. Unless the market moves together it will not reap the benefits and reduce administration costs. Electronic placement will support face to face negotiation, further increase efficiency in the market, reduce back office costs and most importantly, improve customer service.
“Without higher levels of adoption throughout the market we put our investment to date at risk and we are in danger of seeing administration costs rise even higher.”
Around 80 syndicates underwrite insurance at Lloyd's.
Only 10% of Lloyd's business is currently processed through the market's electronic placement platform, which was launched in September 2016, reported Reuters.