Terrorism market increases PPL use in second year
The terrorism market has increased its use of London market electronic placement system Placing Platform Limited (PPL) year on year, according to data released by the organisation.
In March, political violence and terrorism brokers placed 165 risks using the software. This was higher than the 102 risks placed on the platform in March 2017, and greater than the average of 98 risks placed per month for the 12 months to the end of January 2018.
In February, 74 terrorism risks were bound using PPL, again greater than the 55 risks placed in the same month last year.
New lines of business are coming onto the system. The first political risk policy was placed on the platform by BPL Global this month, underwritten by XL Catlin.
March was the first month energy risks were bound on the platform, with seven risks insured through the system.
But attempts to bring kidnap and ransom insurance onto PPL have proved unsuccessful, with no risks bound as of the end of March. Bloodstock is another line that has proved resistant to e-placing, with the market not featuring on the data set PPL shared with The Insurance Insider.
Financial and professional lines brokers have embraced PPL with the most enthusiasm of any London market class of business.
On average, 880 risks a month were placed on the system in the 12 months from January 2017.
Brokers placed 660 financial and professional lines risks on PPL in March 2018, however this was a slight decrease on the 682 risks placed in the same month the year before.
The marine market is slowly warming to electronic placing. The market has now been using the platform for a year, having come onto the system in March 2017. For first 12 months of usage, mariners placed an average 103 risks a month on PPL.
For March 2018 alone, the number of marine risks placed exceeded this average, at 139 risks.
The P&C market has seen a decrease in monthly PPL usage since an early burst of activity in November and December.
In November 2017, the first month P&C brokers used the platform, 188 risks were bound, while 219 were placed the following month.
In January the number of PPL placements in the P&C market dropped off, with 106 risks bound.
In February, the month Lloyd’s CEO Inga Beale announced she would mandate the use of e-placing, just 23 risks were placed in P&C market using the platform. The P&C market returned to higher levels of electronic placing in March, with 104 risks bound.
Liiba CEO hails record PPL usage
A record number of brokers used e-placement system PPL in March, according to Christopher Croft, CEO of the London & International Insurance Brokers’ Association (Liiba).
He said: “The latest statistics highlight a number of positive trends in the take up of PPL in terms of usage. This is being reinforced by the amount of interest we are seeing from our members.
“March 2018 saw more brokers using the system than even before and more quotes were entered onto the system. Compared with 12 months before, the number has risen by over 500 percent.
“Encouraging more brokers to use the platform at the first step of the process is crucial to achieving straight through processing, and one we are promoting.”
Croft also said Liiba was aiming to get its 50 largest members active on the platform by the start of 2019. These adoption plans form a key part of that work, he added.
“Even more encouraging is the level of interest and commitment we are seeing across our entire membership. All the firms who are board members of Liiba have created and shared with us their adoption plans, by line of business for the next year,” Croft said.
Liiba also held two meetings in the last week – attended by over 70 firms – to discuss the platform and the Lloyd’s mandate. This gave firms the opportunity to hear from Lloyd’s CEO Inga Beale on how this will work and PPL chair Bronek Masojada on the commercial necessity for change, Croft explained.
“I expect to see more brokers signing up in the coming months.”