The online reinsurance pricing and placing platform Tremor Technologies says that half of participating reinsurers authorise capacity within a day, with full program capacity received in fewer than three days.
Sean Bourgeois, CEO of Tremor, said: “Tremor’s market design enables efficient pricing and allocation of reinsurance programs competitively. Many 1/1 programs are currently struggling to attract the attention of reinsurers and those that have are finding that there is not enough capacity available.”
He added: “Tremor’s design and the technology powering price discovery and allocation provides cedents and their brokers a much more efficient process to attract capacity competitively and complete programs quickly, far ahead of renewal dates.”
According to the firm, reinsurers offering capacity on Tremor are able to offer precisely what they want while the technology allows the cedent to see the market in aggregate and determine a common clearing price for everyone that satisfies what everyone wants simultaneously.
On average, three-quarters of reinsurer participants agree to contract wording by the end of the first day, with the entire program capacity secured in under 72 hours.
Traditional placements require individual bilateral negotiation which is not only time consuming, but in a hardening market, usually means capacity is offered very late if at all, Tremor said.
Tremor’s market design changes this dynamic both, with process and technology designed to deliver best execution for cedents and their brokers.
In the difficult renewal market conditions we see at this year-end, dynamic placement technology could be a useful tool for cedents, markets and brokers, resolving some of the issues faced and enabling reinsurer appetite to be tested and responded to.