InsurTech startup Tremor Technologies, Inc. has completed another property catastrophe auction placement, successfully pricing and placing two layers of Markel Corporation’s property cat excess of loss reinsurance tower, reports Artemis.
Tremor, which operates an open, technology-driven, programmatic market for the placement of reinsurance risk, completed its first auction of a property cat program in December, 2018.
Almost 50 reinsurers from the traditional U.S., Bermuda, Lloyd’s of London, European Union (EU) and Asia Pacific markets, along with several alternative capital markets participated in the auction, bidding nearly $700 million of capacity across a multiple layer reinsurance tower.
Now, according to an exclusive report from our sister publication, Artemis, Tremor has completed another property cat auction, which took place in the second week of April 2019.
This placement was for insurer Markel and saw 20 reinsurers participate in a programmatic auction process that resulted in around $250 million of capacity made available on Tremor for $100 million of limit.
Speaking to Artemis, the Chief Executive Officer (CEO) of Tremor, Sean Bourgeois said: “Tremor was thrilled to work with Markel on this placement, a marquee insurance brand known for its market leadership and affinity for innovation. This is now the second major property catastrophe placement we have successfully completed in a few short months.
“We had a diverse range of reinsurers participate including leading firms from the US, Bermuda, Lloyd’s and Continental European markets. Many of these reinsurers are repeat users of our marketplace and we continue to get great feedback for ease of use and performance – and of course, we continue to add new features based on this feedback to continue to improve the trading experience.”
Markel Corporation’s Chief Global Ceded Reinsurance Officer, Julia Chu, added: “Markel is increasing its commitment to the insurance innovation community. That is one of the reasons we utilized the Tremor platform for our property catastrophe placement. The placement met expectations and we are pleased with the results.”
Tremor’s programmatic marketplace enables cedants to place their programs in a more efficient manner, and provides both traditional and alternative reinsurance markets with the ability to offer capacity based on risk appetite and capital efficiency.
Tremor’s CEO told Artemis that the firm has an “exciting pipeline of placements” for the coming months, which includes commitments from some of the largest insurance companies in the world. “We have nearly $1 billion of limit committed to date to price and place a number of programs on Tremor over the coming months.
“2019 is going to be a breakout year for the company as programmatic trading becomes a permanent feature of the reinsurance market with Tremor firmly establishing itself as the market leader,” he added.