The London insurance market’s electronic trading platform, PPL Next Gen, has finally been opened for placements to the entire market. This comes after a four-week period of limited access, during which market firms completed training and preparation activities. The platform was also tested during this time to ensure that any “teething issues” were resolved before it was extended to the broader market. PPL’s management noted that no significant problems were found during this period.
With this latest development, all market businesses that have signed Market User Agreements (MUAs) with PPL now have access to the platform to begin trading on their cut-over date. The cut-over date refers to the date on which the business has elected to start moving their business from the original PPL v3 platform to PPL Next Gen.
Objectives of the Next Gen Platform
The Next Gen platform aims to improve on the original PPL single market solution for electronic placing, which allows brokers and insurers to quote, negotiate and bind business electronically. This new platform is expected to make electronic trading more efficient, faster and easier for all market participants. It will streamline the end-to-end process of placing business electronically, reducing the time it takes to complete transactions and improving the quality of data.
Delays in Launch
The leaders had initially been confident that the next stage of PPL would be delivered last year. However, a launch date in September 2022 had to be pushed back for reassessment after it became clear that some elements would not be ready in time. The Board of PPL later confirmed February 20, 2023 as the new launch date.
Once again, it seems that some factors in the launch took longer than anticipated to finalize, meaning the platform was delayed in going to the market by another two weeks. Despite these delays, PPL management is confident that the platform is now ready for widespread market adoption.
Market adoption
Since PPL Next Gen went live on March 6th, market businesses have been completing their training programs, according to Gordon, PPL’s management. Additionally, they have been using what is called a “pathfinder placement” to exercise the platform and iron out any teething issues. He noted that nothing significant has been reported, and they are now in a good position to move to broad market adoption.
The months spent working to get PPL Next Gen to this stage have been challenging, as the London insurance market has been in a state of constant evolution. Now that the platform has effectively been handed to the market, businesses can finally reap the benefits it offers.
The launch of PPL Next Gen marks a significant milestone in the London insurance market’s push towards more efficient and streamlined electronic trading. The new platform is expected to revolutionize the way insurers and brokers carry out business transactions, significantly reducing transaction time and improving the quality of data. Despite the challenges faced in the lead-up to the platform going live, PPL management is confident that the platform is now ready for broad market adoption. Businesses can now look forward to a more efficient and streamlined process for placing their business electronically.
