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iPad innovation: Apple helps underwriters slip into 21st century(Guardian (UK) Via Acquire Media NewsEdge) For centuries, insurance brokers could be seen in the City clutching bundles of papers in leather slipcases. But the underwriting slip, detailing a risk to be placed on the Lloyd's of London market, could soon be a thing of the past. Lloyd's of London has begun a pilot scheme to replace underwriting slips with iPads, Apple's tablet computer (right), which has become a runaway success since its launch this year. The iPads are being tested in the Lloyd's underwriting room by the brokerages Marsh, Cooper Gay and RK Harrison and if successful will be used throughout the market. "We have a queue of brokers wanting to join," said Sue Langley, Lloyd's director of market operations. "We're using iPads to drive cultural change. We want to modernise without losing the essence of Lloyd's." In many ways, Lloyd's still operates much as it did when it began in Edward Lloyd's coffeehouse in Tower Street in 1688, which was frequented by sailors, merchants and ship owners. Merchants would sign below the insurance contracts - hence the term underwriter. Brokers acting for firms seeking cover in areas including shipping, property, motor and aviation - as well as more unusual risks such as space flights and transporting killer whales - still turn up daily from 11am to 3pm at the Richard Rogers-designed tower near Fenchurch Street to visit underwriters. Brokers must often queue, slipcase under arm, before they sit down with an underwriter to negotiate a price for the risks they want to insure. They criss-cross the floor visiting underwriters, as cover is usually split between different insurers, with a lead underwriter setting the terms. When a deal is done, the slip is signed and stamped by the underwriter, with both parties entering the policy details into their own systems later. "The placement of deals is very much done face to face," said Richard Hooks, a Kiln energy underwriter. Julia Kollewe (c) 2010 Guardian Newspapers Limited. |