The last main strand of market reform, namely electronic placing is now seeing some real momentum. Whilst there continues to be many individual/bi-lateral initiatives, and, of course, a growing use of RI3K, we seem to have, at last, the gestation of a genuine cross market concept which seems acceptable from a cost and functionality perspective (many still remember Kinnect!). I refer of course, to the proposed Lloyd’s Exchange.
What is it you may ask? It was described quite simply as getting everyone to the table, talking the same language. Essentially it is a messaging hub which will enable any market participant to connect via the web to access basic information about a risk being placed. Brokers and underwriters are free to enhance the risk package as they see fit for their own systems.
The initiative is perhaps misnamed but it has certainly been led and driven by Lloyd’s. After Lloyd’s initial push it has now become a market project with brokers and the company market all gearing up to be involved as early as possible. IUA will contribute to the next phases of the project with great vigour and enthusiasm. We agree that the hub is a real catalyst to increasing e-placing and should show once again that London is increasing its efficiency and demonstrating its innovation to its clients and other markets.
We eagerly await the pilot in the first quarter of 2009.