The International Underwriting Association has established a code of conduct for the use of electronic trading by its member companies in the London insurance market
Guidelines have been drawn up to encourage firms in their adoption of the Placing Platform (PPL) system that aims to cut costs and improve market efficiency.
Members of the IUA Board have endorsed the code of conduct that states companies should seek to comprehensively adopt electronic placement across their business operation. The voluntary guidance also outlines how underwriters should incorporate usage of PPL into their working day and respond to submissions as soon as possible.
Malcolm Newman, chairman of the IUA, said: “Many IUA companies are already working to introduce electronic placement into their business and are strong supporters of market-wide modernisation efforts.
“For PPL to be truly successful and deliver its expected efficiency benefits, this adoption process needs to accelerate throughout the London Market across multiple business lines.
“Our new code of conduct encourages firms to consider electronic placement as business as usual, responding swiftly to broker submissions and using the PPL system to support face to face negotiations.
“Lloyd’s has announced it will be mandating electronic placement for managing agencies. Many London Market policies are placed on a subscription basis with both Lloyd’s and company carriers and it makes little sense to employ multiple placement processes.
“The IUA will, therefore, be working closely with Lloyd’s, as their mandate process is developed to ensure electronic placement is adopted and helps improve customer service across the London Market. It is, therefore, our ambition to match Lloyd’s adoption targets.”
More than 15,000 risks have been bound on the PPL platform so far and in certain classes significant amounts of business are regularly being placed electronically. In January, for example, the system was used to close the Aon Client Treaty facility for 2018, one of the largest and most complex transactions in the London Market.