Exclusive: Fewer than a third of the brokers that operate through Lloyd’s are signed up for Placing Platform Limited.
Of around 160 brokers who place business through Lloyd’s, just 44 are registered on the system. This is an increase of just eight in three months.
This means that while Lloyd’s has hit its current target of having 20% of business placed through PPL, a majority of broking firms are still not using the system at all.
As expected, the biggest three brokers – Marsh, Aon and Willis – are placing more business than other firms. An exact breakdown of how much PPL business has been placed by these firms was not immediately available, but Post understands that employees at the big three are being encouraged to set an example for the wider market.
Financial and professional lines represent nearly 70% of risks placed electronically, while it is understood that others are in single digits so far.
Lloyd’s continues to encounter resistance to the project. Brokers have raised fears that they will lose the face to face interaction that many see as key to Lloyd’s. Others have voiced concerns that the project is being done to them, rather than for them.
Speaking at Post’s Digital Insurance World conference on Tuesday, head of PPL market relations & communications, Ali Dove, remained upbeat about the project.
Dove said: “We are over that hill now of people waiting for this to fail. It is not in anybody’s interest for this not to work, especially as we have a different landscape now. It used to be a lot of ‘wait and see what the others are doing, we don’t want to be first’, and now the conversations continually are how can I, not why am I doing this. Which is also fantastic.”
Departing Lloyd’s CEO Inga Beale has warned that the project is not moving quickly enough. Each syndicate is required to write at least 30% of its business through PPL by December 2018, or face fees.
Beale has previously commented on the mandate: “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. Those that fall short will be required to contribute towards the costs of modernising the market.”
While a low proportion of brokers are accessing PPL, the £250m Target Operating Model project is moving faster than planned and under-budget.
Lloyd’s chief operating officer Shirine Khoury-Haq told Post’s Digital Insurance World conference: “So far we’ve delivered initiatives that were originally planned for later phases of the TOM earlier and we’ve kept the whole programme under budget. That means that where we originally said this thing was going to take three phases to deliver, we think we can complete it in one more phase.
“We’re carrying over funding from the previous phase as well. The market is now thinking about what that will look like precisely and how we will govern the future.”
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