Insurance is an industry on a steep learning curve to adapt to the pace of innovation across various business units and their functional areas. One part of that learning curve is digital placement. In the world of insurance risk placement, the terms ‘Electronic’ and ‘Digital’ have often been used interchangeably. Whilst in the past that may have been understandable, nowadays, advances in technological capability force us to consider them as separate and distinct. This article aims to cut through the noise and offer up a simple way to understand the differences between the two.

One way to understand ‘electronic placement’ is that it replaced what was in paper form, with a static copy on a computer screen. Cast your mind back to the days fighting with the office printer/scanner. The risk exchange takes place with data in a very simple form which requires manual intervention when that information is needed in another place or system. Think about an email with a PDF attached. How many hours are spent by people downloading/uploading documents manually from one system to another?

Digitally enabled placement takes the detail of ‘electronic’ and turns it into structured data, making it super powered. Structured data can be processed and sent to multiple recipients and systems with no manual intervention (aka automation). It also ensures that data can be shared between market players in a clear and standardised way. Not only that, but there are many more benefits to structured data than you may initially think: reduced E&O risk from less manual rekeying, greater efficiency and productivity as less time is spent on admin, and superior connectivity between systems and business units to name.  And that’s just the start of the benefits, as we regularly hear from our Whitespace customers.

When you next place a risk, keep the above in mind and ask yourself whether electronic or digital placement is what you need. One gets the job done, the other potentially puts you in front of your competition.