Ebix Extends Support to Lloyd’s Plans to Mandate the Ebix Powered PPL Exchange
Atlanta: 19th February 2018: Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, today announced that it has decided to extend its full support to Lloyd’s of London in its attempt to mandate the use of the Ebix powered electronic placing platform PPL exchange, while requiring all brokers and underwriters to switch from paper-based to electronic trading in an expeditious and phased manner. Ebix’s appreciation of Lloyd’s efforts to modernize the London market as also its commitment to support Lloyd’s in deploying the PPL exchange extensively, was conveyed by Ebix Chief Executive Officer Robin Raina to the Lloyd’s Chief Executive Officer Inga Beale, in an one-on-one conversation.
This could be a major development in the push to aggressively deploy the exchange, and get rapid market usage of the exchange. With Lloyd’s confirming its intent to consult the market on the extent and timing of this mandate, eventually this PPL exchange could cover the whole market, which writes approximately $42 Billion of premiums every year.
Over the last few years, Ebix has worked closely with PPL to deploy various lines on the platform, while continuing to enhance the platform to meet the London modernization goals. PPL is a core component of the London Market Target Operating Model (TOM) market modernization programme. It is being implemented by Lloyd’s to expedite the way the market does business, while also driving down processing costs.
To date over 15,000 risks have been bound on the PPL exchange, accounting for approximately 10 percent of the market’s total since the exchange was deployed in 2016. Also, nearly 60 percent of the financial and professional lines risks are being placed electronically now. Recently, this Ebix powered PPL exchange was used to close the Aon Client Treaty facility for 2018, one of the largest and most complex transactions in the Lloyd’s market.
On April 15th, 2016 Ebix had announced that it had signed a contract with Placing Platform Limited (PPL), to deploy a single insurance exchange across the entire London insurance marketplace, to facilitate electronic placement of insurance, while capturing and processing risks electronically. The PPL Board had signed the contract on behalf of the International Underwriting Association (IUA), the London & International Insurance Brokers’ Association (LIIBA) and the Lloyd’s Market Association (LMA).
This mandate by Lloyd’s could be a major step forward to further enhance the London market’s leadership and global reputation. With this exchange, London will be the first and only commercial insurance market globally to implement electronic placing fully and mandate its usage across the marketplace.
Such improvements will make the London market the most efficient place to do insurance business worldwide. There is a consensus that London has to continue to modernize to attract more global insurance business and this exchange is designed to lower placement costs and make the market more accessible to international clients.