Lloyd's "Transforms" through Electronic Placement Target Mandates

Lloyd's will require each syndicate to write no less than 40 percent of its risks using a "recognized electronic placement system" for the first quarter of 2019, increasing to 50 percent for the second quarter of 2019. Lloyd's said a quote target will also be introduced in second quarter 2019, and all targets will now apply to both lead and follow business.

To support electronic risk placement adoption across the market, Lloyd's brokers will also be required to connect to a recognized electronic placement platform by June 1, 2019.

The mandate was issued in the first quarter of 2018 following discussions with members of the Lloyd's market, the Lloyd's Market Association, the London & International Brokers' Association, and the International Underwriting Association.

Designed to accelerate the market's digital transformation and to ensure the market realizes the benefits of electronic placement, the mandate has already driven impressive adoption across the Lloyd's market, Lloyd's said.

Lloyd's chief operating officer, Shirine Khoury-Haq, said, "Since we implemented this mandate across the Lloyd's market, we've seen a marked increase in the adoption of electronic trading, which is fast-tracking our [digital] transformation. The latest developments, including quote targets and the Lloyd's broker requirement, are essential next steps in our journey to digitise our market.…"

By the end of 2018's third quarter, Lloyd's said 29.8 percent of "in scope" contracts were placed electronically in the Lloyd's market and almost reached the 30 percent fourth-quarter target. Syndicates meeting and exceeding the targets receive a rebate on their annual subscriptions, according to Lloyd's.

Currently, all classes of business are available on the electronic placing platform provided by Placing Platform Limited, with 58 brokers and 124 insurers signed up as of November 30, 2018.