COVID-19: London market shifts to e-trade

Phase one of the Future at Lloyd’s - with a focus on embracing electronic trading capabilities - got underway just in time, with the 330-year-old market announcing the closure of its famous underwriting room on 12 March. 

As the market makes the cultural shift from face-to-face transactions to remote working, broker Aon has announced it has improved its trading portal, ABConnect Placements, to electronically bind treaty placements with Lloyd’s of London and International Underwriting Association (IUA) markets from the 1 April reinsurance renewals.

Andy Marcell, CEO of Aon’s Reinsurance Solutions business, said: “With the global outbreak of COVID-19, electronic and online capabilities play an even more vital role in reinsurance transactions as we adapt the way we operate to support remote working.”

Nick Frankland, UK CEO of Aon’s Reinsurance Solutions business, added: “This is another breakthrough in the modernisation of the London market. We are excited to lead advancements in digital innovation and support the Lloyd’s Blueprint. With in-person meetings not currently possible, we look forward to collaborating with all our reinsurer trading partners electronically.”

Lloyd’s has taken a 40% stake in the London Market’s electronic placing platform (PPL), forming a key component of the new complex risk platform.

The insurance market will prioritise three foundational initiatives in 2020 that will create the essential infrastructure and lay the groundwork for the Future at Lloyd’s ecosystem. These are data and technology architecture, lead/follow (modern syndication of risk), and middle and back office transformation.

In the past, the market was accused of being slow to adopt new technology initiatives.