Broker's electronic system transfers bespoke risks direct to underwriters
Aon's long-awaited electronic trading system for corporate risks is being used for the first time on 1 July renewals.
Aon corporate division chairman David Martin said that Aon Market Exchange (AME) is being used for all renewals in the Redhill and Manchester offices. He added that it would be rolled out to other offices later in the year.
The system allows Aon's brokers to send risks electronically to underwriters who can then also respond using the same system, providing comparative quotes. Martin said that Norwich Union, Royal & SunAlliance, Zurich and Allianz Cornhill were currently able to provide cover through the system and that there were another 20 or so insurers in the pipeline, including some Lloyd's syndicates.
Martin said that the system would not be used for smaller risks and was not a competitor for the likes of Acturis.
"AME is designed for bespoke risks and provides cover at inception," he said. It is likely that the use of a system that provides cover at inception will reduce the number of disputes, said a senior market source.
Martin said that brokers who had been trialling the system had been able to get two days' work done in two hours. He added that the key to the success of the system was the standardisation of defined risks within the cover and that more bespoke elements, like shared car extensions for fleet, could be added.
Martin said that while the system would offer huge time savings to brokers, it would not lead to redundancies.
"We will use the extra time to get a better understanding of our existing clients and win new business," he added.