Lloyd’s online data transfer system ends

After a mere five years and a price tag of $124.9 million, Lloyd’s of London plans to close its Internet-based risk-data platform Kinnect.
Kinnect customers were recently informed by interim chair of the market-backed Internet platform Michael Dawson that the Lloyd’s Franchise Board would not continue to fund the project.
“After close consultation with a number of managing agents,” Dawson says, “it was decided that support for a centrally built hub was not sufficient to continue the development of Kinnect.We will, however, continue to work with the market in support of electronic trading.”
The online platform designed for secure data transfer between underwriters and brokers is set to complete all operations by the end of March.
Currently the platform consists of 22 broker and insurer customers, who were not paying any fees in order to utilize the system during 2006.
Dawson tells customers that the Franchise Board had “decided that the platform was not optimal in ensuring more efficient business processes for the Lloyd’s and London market, and as a result it will close.”
He adds that Lloyd’s implemented the online system in order to modernize the way data is transferred across the market. He also says that Lloyd’s set out a “clear view” in its recent three-year strategic plan stating it would go forward by building standards rather than building infrastructures.