Five years into the project, the decision is taken to close down Kinnect

The plug has been pulled on Kinnect, the London market electronic platform. After five years of development and over £70m, the announcement was made on 24 January in a letter by Michael Dawson, interim chairman of Kinnect. In the letter, Dawson confirmed that Kinnect's board had decided to close the platform as it was considered "not optimal in ensuring more efficient business processes for the Lloyd's and London market".

Steven Haasz, director of change management and human resources at Lloyd's, who was drafted into the Kinnect team following the departure of CEO Toby Davies and executive chairman Iain Saville, believes the market has moved on significantly since Kinnect began, so limiting the benefits of such a project. "Firstly, technology has moved on so that there are different technical solutions now available to organisations. Secondly, standards have moved on and we have obviously been heavily involved and tremendously supportive of the work that organisations such as ACORD are carrying out. Thirdly, the capability and confidence of market associations has significantly moved on as well."

Haasz also added that he now believed it would be extremely difficult to get the entirety of the London market operating on a single central hub, as the marketplace is one in which peer-to-peer transactions now work alongside electronic hubs.

The closure of the platform will be a phased process, which will be carried out within a timeframe established through discussions with those currently trading on the platform.