Tremor upgrades risk transfer marketplace

Source: Tremor

Tremor, a programmatic insurance and reinsurance risk marketplace has announced a suite of new features available this November in the 2.0 release of its programmatic marketplace.

These features include a suite of powerful quoting tools that empower cedents and reinsurers to simply and precisely express their terms, aggregate reports that offer insight into individual transactions and the market at large, and a broker portal enabling brokers to leverage Tremor’s independent marketplace on behalf of their clients. “We have been working hard in close partnership with insurers, reinsurers and brokers over the past several months - these are the features they wanted us to build and we are thrilled to deploy them ahead of schedule for the upcoming renewal season. We are really excited to launch these new features which add significantly more power and quoting flexibility to our marketplace, further separating Tremor from the competition, `` commented Sean Bourgeois, CEO.

New for cedents:

Budget Quoting: Cedents can now state a program budget with price guidance for individual layers. This enables Tremor to shift the cedent’s spend between layers as necessary while guaranteeing that the budget is not exceeded, allowing layers to be priced more precisely from reinsurer quotes and reducing contracting friction relative to a standard placement process.

Aggregate Supply Analytics: Tremor now reports aggregate supply to cedents and participating reinsurers. Aggregate supply - the total supply available in the market at thousands of different price points - gives cedents insight into how they can optimize their reinsurance structure and risk kept on the books, and gives all parties insight into the capacity available in the market. The insights in this report are unprecedented in the market and unique to what a third-party exchange with sealed bidding can provide.

New for reinsurers:

Reinsurers can now tie layers together. Reinsurers can choose to leverage Tremor’s standard quoting process and add subjectivities, or to submit an “equal share” quote that guarantees an equal percentage of all layers of a non-proportional program.

Standard Quote with Subjectivities:

A reinsurer using Tremor’s standard quote method can now add subjectivities after expressing supply curves and capacity limitations. Subjectivities authorize a total allocation subject to one layer representing a minimum (or maximum) fraction of the reinsurer’s total allocation. With subjectivities, one layer may subsidize another in order to maximize a reinsurer’s allocation while ensuring the aggregate price meets the reinsurer’s needs. .

 

“Subjectivities give reinsurers the power to precisely manage the composition of their allocations. The guarantees Tremor’s platform is able to offer are unique -- no other process today can guarantee that constraints like these will be satisfied for all participants simultaneously.”, said Chris Wilkens, Tremor’s Chief Product Officer.

Equal Shares Quote

Alternatively, reinsurers who wish to tie layers together can submit an equal shares quote. An equal shares quote states the share of the program a reinsurer would like to cover based on the blended rate on line, along with optional layer price guardrails; all reinsurers submitting an equal shares quote are guaranteed to receive the same share of each layer.

“The Tremor platform is uniquely capable of supporting these new expressive quoting features due to the sophistication of our market design and optimization methods. We need to allow participants to be able to express complex preferences while retaining both the necessary economic incentives and being able to clear the market computationally,” observed Ben Lubin, CTO.

 

These powerful new quoting features flow natively into our proprietary matching engine, which contemplates all the complex quotes received to determine true market clearing prices so that a program is neither oversubscribed nor undersubscribed. These enhanced quoting features and technologies to clear the market are the result of a year-long effort by the Tremor team to incorporate feedback and user requirements from clients.

New for brokers:

Brokers now have a comprehensive management and analytics dashboard where they can represent clients as directed, and when broker clients log-in they see a broker-branded portal of the Tremor exchange.

 

These tools enable brokers to maintain client relationships while leveraging the power of Tremor’s independent exchange to achieve unprecedented speed and accuracy. Programmatic integration is also available.

Tremor’s 2.0 release adds features that continue to harmonize the re/insurance market’s needs with the latest in smart market design to produce unrivaled programmatic transaction results to the benefit of all market stakeholders - cedents and their brokers along with reinsurers - and the company is excited to continually improve the user experience as we work to create the most competitive, fair and efficient independent risk transfer marketplace in the world. 

Comments: (0)

THE STATE OF DIGITAL BANKING, 2019 - Landscape: The Digital Banking Strategy Playbook