Lloyd's pulls plug on £70m trading system due to low usage

Introduced in 2001, the Kinnect system was designed to be a central electronic hub that traders could plug into to share documents and files electronically, instead of having to move them physically from one building to another.

Download this free guide

From forensic cyber to encryption: InfoSec17

Security technologist Bruce Schneier’s insights and warnings around the regulation of IoT security and forensic cyber psychologist Mary Aiken’s comments around the tensions between encryption and state security were the top highlights of the keynote presentations at Infosecurity Europe 2017 in London.

Start Download

• Corporate E-mail Address:

  You forgot to provide an Email Address.

  This email address doesn’t appear to be valid.

  This email address is already registered. Please login.

  You have exceeded the maximum character limit.

  Please provide a Corporate E-mail Address.

By submitting my Email address I confirm that I have read and accepted the Terms of Use and Declaration of Consent.

By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.

You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

The system was set up to allow risk information to be quickly shared between underwriters and brokers, enabling them to put together policies more efficiently.  It was also intended to help Lloyd's meet compliance demands set by the Financial Services Authority.

The industry regulator has told insurers that by 2007 it wants all commercial contracts to be finalised within 30 days of being signed.

The decision to shut down the Java-based system follows a strategic review at the insurance market earlier this month. A Lloyd's spokesman said, "One thing that everyone in the market would agree with is that it needs good electronic trading to remain competitive. The role of Lloyd's is to set technology standards; it should not be to build infrastructure."

Lloyd's target was for 70% of insurance contracts to be processed and recorded over Kinnect by 2007, but only 21 companies out of 200 have used the system.

A handful of major brokers have used the system, including Guy Carpenter, JLT, and Marsh and Willis, but take-up remains patchy.

Some insurance brokers who decided not to use Kinnect have set up their own independent trading and compliance systems.