The Board of the London and International Insurance Brokers’ Association (LIIBA) today released charts illustrating the breadth of take up of electronic placement by their members. The number of risks bound has risen six-fold in the last year, with a significant proportion of that activity being driven by international brokers – i.e. those not in the top four by income.
Christopher Croft, CEO of LIIBA commented: “The significant uptake since April 2017 is very pleasing, but what is especially gratifying is that the wider membership is increasingly the engine room for this growth. Our larger members led the initial charge and continue to expand their usage but our aim was always to see others take up the baton. It is great to see that process coming to fulfilment.”
Insurance Edge Comment:
Increasingly Lloyd’s syndicates and the insurance market in general are placing all classes of risk via electronic platforms. This is the global future of our industry, and it is largely unaffected by politicians squabbling endlessly about Brexit. Companies and governments want things insured within seconds, all around the world. That means data must be sifted accurately, rapidly, and binding agreements made in real-time, within minutes sometimes, so that business continues seamlessly.
Necessity is both the mother of invention, and worldwide global regulation. What needs to be done to enable day-to-day business trust between insurer and client will be the foundation of all e-trading platforms in the future.
In 2018 the Aon Client Treaty deal was executed electronically, and at 191 pages long, with 20 underwriting authorities involved it was something of a landmark moment. What PPL and other online platforms boil down to is that even the big stuff, with tons of T&Cs and disclaimers, can usually be dealt with by machines.
Although insurance will always need some form of human intervention, especially when assessing complex risks, there’s no doubt that digital trading will increase, with much of the nitty-gritty details being sorted by AI-powered algorithms.