Insurtech Tremor launches reinsurance platform
Connecticut-based startup Tremor Technologies has launched a risk placement marketplace for reinsurance protection.
Tremor's platform aims to establish fair and efficient market prices for reinsurance risks and programmes, enabling more efficient price formation for insurers, reinsurers and intermediaries, the company said.
The platform allows for risk to be allocated to maximize the net benefits of risk transfer, according to the company. Participants set limits on exposure within and across programmes, and place bids indicating the quantities desired to sell or buy over a range of prices. With these inputs, the market platform uses optimization to find and execute the best allocation of risk and compute competitive clearing prices for settlement.
"We maximize value for both sides of the market and then fairly share that value among participants with competitive clearing prices," said Peter Cramton, Tremor's chief economist.
Programmes prepared by brokers and cedants are placed on the platform with contracts and submission files in virtual private data rooms. Reinsurers approved by the cedant review and evaluate the programmes, then submit private, sealed bids to an auction. The auction then matches capital to risk and reports the final trades and prices to be settled.
"Tremor has raised meaningful venture capital and has recruited a world-class market design, product and engineering team that has been busy over two years building a tremendously powerful marketplace in direct partnership with market participants," said Sean Bourgeois, Tremor's founder and CEO.
Tremor claims that cedants benefit from a more dynamic market, and more efficient bidding with competitive pricing. Reinsurers and alternative capital providers (protection sellers) benefit from more access to risk with powerful tools to manage their capacity deployed across programmes.
"Intermediaries will be an important partner for Tremor," Bourgeois said. "Our approach lets intermediaries focus on their highest-value activities such as program design, bidding strategy, and analytics while we focus on pricing, allocation and placement with technology. Brokers will be welcomed as programmatic traders. We have built access specifically for them to manage client accounts."
Tremor has auctions planned for the fourth quarter of 2018.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
QBE North America sells personal insurance business to Liberty
Cat losses drop significantly in H1
R&Q partners with three MGAs in Europe
QBE Europe combined ratio jumps in H1 while North America improves
Brit rebuts reports that it is exiting US yacht
NN Group strikes €155m acquisition in Slovakia, Czech Republic
DARAG appoints Halley as group CFO
NN Group appoints CEO international insurance, board members
Dutch P&C underwriting helps boost NN Group Q2 results
