Lloyds Tells Brokers To Go Digital In 2019 Or Go Home

Lloyd’s of London has announced that it might impose a ban on insurance brokers who refuse to digitalize their business in 2019.

In a press release, the company revealed that starting next year “each syndicate will be required to have written no less than 40 percent of its risks using a recognized electronic placement system with the target increasing to 50% in Q2. A quote target will also be introduced in Q2 2019, and all targets will now apply to both lead and follow business.”

Lloyd’s added that brokers will also be required to connect to a recognized electronic placement platform by June 1, 2019. If a broker fails to comply, “it would be open to the board, depending on the circumstances of the case, to disapply the requirement, allow further time for compliance, or to deregister the broker as a Lloyd’s broker.”

“Since we implemented this mandate across the Lloyd’s market, we’ve seen a marked increase in the adoption of electronic trading, which is fast-tracking our transformation,” said Lloyd’s chief operating officer, Shirine Khoury-Haq. “The latest developments, including quote targets and the Lloyd’s broker requirement, are essential next steps in our journey to digitize our market and to provide the best possible service to our clients.”

In addition, the company announced that Sonja Rottiers has been appointed CEO of Lloyd’s Brussels, as well as Lloyd’s regional director for Europe, Middle East and Africa. She will start her position this coming February.

“I am thrilled to have the opportunity to join Lloyd’s at this exciting time in its history,” said Rottiers. “The European risk landscape is changing, and there is increased demand for the specialist risk solutions that Lloyd’s excels at. I am looking forward to the new opportunities that Lloyd’s Brussels will bring to the market, and to help grow our business in the continent.”