TigerRisk makes electronic trade first using Xchanging platform

Xchanging, a provider of technology-enabled business solutions to the global commercial insurance industry, today announced TigerRisk Partners, the risk/capital management and strategic advisory firm, has transacted the first ever electronic secondary reinsurance trade using Xchanging’s X-gRm platform.

Xchanging believes development of the secondary market will benefit buyers and sellers alike.  It said buyers gain the ability to quickly and efficiently trade in and diversify their portfolios. Sellers, meanwhile, benefit from an easy way to trade out of a position and seek a better allocation of their capital.

Since its release in March of last year, over 750 users from 130 reinsurance carriers have signed onto the multi-broker X-gRm platform. The platform provides reinsurance markets a single online repository for brokers to distribute offers, submissions and information such as exposure data, analytics and terms and conditions all in one place. Moreover, a built-in analytics tool enables buyers to ‘triage’ an offering to ensure it conforms to their risk appetite.

Rod Fox, chief executive officer of TigerRisk, said: “Executing secondary reinsurance trades in ‘a live market environment’ provides a host of benefits. It adds liquidity, increases volume and speeds transactions - something we’ve been wanting to achieve in catastrophe reinsurance for a long time.

“In addition, it opens an easy-to-access, pre-qualified channel for buyers.”

Fox also said that creating a secondary trade marketplace on X-gRm is only the first step: “Ultimately, I believe this will lead to the development of a pure derivative market for reinsurance,” he added.

Nick Lamb, director of broking services at Xchanging, commented: “Expanding the use of X-gRm to the secondary marketplace is a significant step for this multi-broker platform, and we’re convinced this will become an integral facility of the platform.”