Aon UK has announced that it "will move to a full electronic trading capability during 2006 for its specialist insurance and reinsurance businesses."

The company plans to phase in electronic trading gradually, claiming it "will begin to transition its portfolio of specialist insurance and reinsurance business from physical to electronic distribution in July this year." "This means that in the near future all contracts and endorsements distributed by Aon in London can be signed on-line, not on paper."

Aon's decision marks the start of the long awaited move to electronic trading platforms. Although many London underwriters and brokers use electronic technology, it has not been employed on a mass scale, certainly not one as large as Aon's, to begin doing away with the mountain of paperwork the London Market in general, and Lloyd's in particular, generates every day.

"The implications for insurers and reinsurers are far reaching,” said the company in a statement. “They will now be able to receive electronic notification of the incoming offers, agreed quotes and signed lines directly into their underwriting systems. This will provide greater transparency and certainty around the contract, remove much of the re-keying associated with the current process and also significantly reduce the possible degradation of information provided to underwriters.”