Treaty reinsurance business has now gone live on the London market’s electronic placing platform PPL, completing the platform’s roll out of products.
PPL’s focus will now be on continuous improvement of the technology, functionality and usability of the platform, its board said.
Treaty reinsurance joins several other classes of business that can all be placed electronically, including terrorism, energy and construction, political risks, kidnap and ransom, accident and health and aviation risks.
In a statement, PPL board chairman Bronek Masojada said: "It is great news that PPL now has all insurance and reinsurance classes of business live so that the whole market can continue its progress in adopting electronic placement.
“With a record number of risks bound on the platform in recent weeks, there are positive signs that brokers and underwriters are working together to reap the benefits of increased efficiency, reduced back office costs and, most importantly, improved client service.”
PPL is a core component of the London market Target Operating Model.
Earlier this year, Lloyd’s issued a mandate for the use of electronic placement as it seeks to increase efficiency and reduce costs, warning of financial penalties for failures to comply.
As part of the mandate, each Lloyd’s syndicate was required to have written at least 10 percent of its risks electronically from the end of the second quarter of 2018.
This target will rise by another 10 percent each quarter until the fourth quarter to reach 30 percent, with further targets to be confirmed before the end of the year.
Lloyd’s said that by way of financial incentive, if managing agents meet with each of the target requirements then members of that syndicate will be eligible to receive a rebate on their annual subscriptions.
However, it warned that if managing agents do not meet with each of the target requirements, then members of that syndicate will pay additional fees, in order to contribute to the costs of modernising market systems and processes and may be subject to capital loading.
The electronic placing platform provided by PPL was launched in July 2016, initially for standalone terrorism business.