Electronic business growth supports substantial RI3K price cut

Press Releases / 26 June 2006

Promise to market fulfilled following broker take-up

London: Due to a dramatically changed landscape, RI3K has announced an 80% price cut for underwriters using its electronic marketplace.

For all risks bound on the RI3K Marketplace after 1st August 2006, underwriters will be charged only £50 per line. The previous charge was $500. There will also be a small £10 fee for each endorsement.

RI3K’s Marketplace brings risks in a structured, contract certain, auditable format to the desktop of the underwriters. This means that when the risk is bound on-line there is a single record of the placement process and a single copy of the contract wordings, with all its versions.

Alex Letts, RI3K’s Chief Executive commented, “Last year we made a commitment to the market that as volumes grew we would work towards a £50 price point. Recent activity around broker distribution has allowed us to bite the bullet and make the move in a single step.”

RI3K’s Marketplace creates ACORD standard data around the placement process for all types of reinsurance risk. Direct insurance will be tradeable from this September.

“We are working within the FELIX framework to hand-off the data electronically to XIS. We would encourage companies to speak to us about how to receive this data electronically to reduce their own processing costs,” added Letts.