Brit Insurance has become the first insurer in the Lloyd’s market to both endorse a risk and bind a new risk via the Lloyd’s Exchange*.
The endorsement agreement, the first to use two way electronic messaging via the LEX, was achieved earlier this month between Sarah Mack, of Miller Insurance Services Limited (Miller) and Brit Insurance Energy Underwriter Sara Valentine.
Brit Insurance has been a leading player in the development of e-placement support for risks over the last three years – both for renewals and new business – and was the first to complete initial LEX connectivity testing earlier this year. This has built upon the previous two-way connectivity established with Aon, Miller and a number of other brokers.
E-placement allows delivery of structured risk information and supporting documentation. Underwriters can respond electronically with their agreed line size from any geographical location. Using a single connection, the need for multiple peer-to-peer links is eliminated. From early 2010, the LEX will also validate the content of the message to ensure it is 100% compliant with agreed standards, thus avoiding the need for technical queries between underwriters and brokers.
Malcolm Beane, Chief Operations Officer at Brit Insurance, commented: “This agreement marks a real and significant development in electronic trading at Lloyd’s. Brit Insurance is proud to be at the forefront of market change and we are confident that the Lloyd’s Exchange will transform the way our market does business.”
Sue Langley, Director Market Operations & North America, Lloyd’s, commented: “Building on the live one way messages currently being sent, it is exciting to see Brit Insurance complete the first two way agreement. This is the next step on the Lloyd’s Exchange and it’s great to see Brit Insurance pushing this forward.”
John Bissell, Head of Operations and Board Director at Miller, commented: “We are delighted to again be at the forefront of making things happen in the market and demonstrating that organising and standardising two-way electronic data messaging in support of the insurance placement between parties does work.”
*How does the Lloyd’s Exchange work?
Brokers send an ACORD format message from their system to the new Lloyd’s Exchange, which then routes the data and documentation to the Brit Gateway and any other underwriter connected to the Exchange. This works in a similar fashion to a telephone exchange, in that the participant brokers and underwriters build and maintain only one connection. The Exchange manages all of the routing.
