The London market will take tentative steps toward modernisation this week as it is set to roll out an electronic placing platform that aims to ease doing business.
The new system, run by Placing Platform Limited (PPL), will enable brokers and underwriters to see policy details, quotes, orders and financial transactions in a single hub, the Financial Times
PPL chairman David Ledger said users will gain numerous benefits from the system, including improved security and reduced administration errors.
“It has significant costs saving,” the Financial Times
quoted Ledger as saying.
According to the report, the electronic platform will have an audit trail of past deals and will link in with the IT systems of insurers and brokers.
The system will replace papers and e-mails while also enabling remote placing globally.
However, the electronic platform will still support traditional face-to-face trading instead of completely replacing it.
The platform’s first users are buyers and sellers of terrorism insurance who will now make deals online.
“We wanted to go live with a class of business that was fairly tight in terms of the number of brokers and carriers — we’re going live with nine brokers and 42 carriers,” Ledger told the Financial Times
Ledger said the platform will be rolled out next to professional indemnity, directors’ and officers’ liability insurance and financial institutions cover. In two years, it will be extended to the whole market.
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