Tremor's Programmatic Reinsurance Marketplace open for business
Tremor's platform is a smart market to establish fair and efficient market prices for reinsurance risks and programs, resulting in more efficient price formation for insurers, reinsurers and intermediaries. Risk is allocated to maximize the net benefits of risk transfer. Participants set limits on exposure within and across programs, 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," says Peter Cramton, Tremor's Chief Economist.
Tremor fits seamlessly into current workflows. Programs prepared by brokers and cedents are placed on the platform with contracts and submission files in virtual private data rooms. Reinsurers approved by the cedent review and evaluate the programs, 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." says Sean Bourgeois, Tremor's Founder & CEO.
Insurers (protection buyers) 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 programs. In other industries that have introduced programmatic technologies based on auction mechanics, intermediaries have played a key role in helping buyers and sellers optimize their strategies and developed new revenue sources from this expertise. All participants benefit from richer information about preferences in the market and more efficient market-clearing prices.
"Intermediaries will be an important partner for Tremor," says Bourgeois. "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 is actively on-boarding dozens of buyers and sellers and has auctions planned for the fourth quarter this year. To learn more about the platform contact Tremor on firstname.lastname@example.org to schedule an initial discussion and platform demonstration.