Tremor Technologies has built on the success of its original programmatic re/insurance risk transfer marketplace with the launch of its next generation trading platform, Panorama™.
As Tremor continues to expand, having now exceeded $1 billion in risk priced and placed with its tech with almost 100 participating reinsurance markets, its technology has evolved to “perfectly match” the needs of the reinsurance market.
Panorama, which incorporates Tremor’s learnings and market request over the past two years, offers the same technical foundation. However, cedents will now receive 100x more data and enhanced pre-trade insight to make the best reinsurance purchase decision possible.
Tremor claims that by utilising Panorama, cedents can obtain the best single market clearing price for each layer for each programme, in either a soft or hard market, in an extremely efficient manner.
“There is a reason billions of dollars a month in U.S. government bonds are auctioned at a uniform clearing price as opposed to dozens of prices and quantities – a uniform clearing price has been proven to be much more price efficient and deliver more revenue to the issuer. Insurers should insist on the same to optimize the pricing of their reinsurance – Tremor Panorama offers technology to ensure competitive uniform clearing prices are found every time,” explains the company.
The risk transfer marketplace has also provided some insight into the Tremor Market Map™, which collects the entire order book from all placement participants, enabling cedents to “see the whole market” for their program as opposed to indicative pricing and intuition.
“Real, bindable prices with incredible market intelligence to ensure insurers leave nothing on the table,” says Tremor.
Adding: “One of the most popular feature requests has been the ability for the insurer to “see the market”, to see the entire order book before indicating the price they’d like to pay and the fill they could receive, subject to reinsurer preferences. Panorama delivers this functionality and more, allowing cedents to not only see the entire market, but to see their negotiating position before setting the price for their placement while individual reinsurer bids remain private – which allows reinsurers to compete without holding back.”
Cedents are also now able to compare real pricing for contract options in real time. As an example, Tremor says that cedents are able to compare the real price difference between placing with or without pandemic coverage – without having to go back to the market to start long discussions.
“Panorama combines pricing and placement in a single step, allowing cedents to bind a program in days with a single click,” continues Tremor.
Another feature request that Panorama now offers cedents, sees Tremor offer more flexibility to insurers to retain control of individual assigned lines by reinsurer, taking things like long-term relationships, credit quality and more into account as part of the binding process.
Both Smart Bidding and Smart Scenarios are also highlighted as benefits of the new platform: “Panorama offers powerful optimization options to click to solve for a number of common scenarios to save insurers time to find optimal pricing and placement under a range of conditions powered by Tremor’s matching engine.
“Panorama enables insurers to set up scenarios of price, fill, term selects and allocations to compare and contrast across each option. Panorama allows reinsurance buying teams to present a range of scenarios to their respective executive committees and then walk through each option and toggle any placement dimension in real time with instant price and fill impact to arrive at the best overall decision for your firm – in seconds, not weeks or months. No need to go back out to the market to renegotiate each change, with Panorama, it’s all here – see results immediately.”
Tremor’s original platform boasted a “bind in a single click” capability, which the firm notes is the same with Panorama but with even more flexibility. Insurers are now able to coordinate their placement in a matter of days and bind their program in just one click; while prices and allocations selected by cedents are final and delivered for contract wording signature.
For reinsurers, Tremor explains that Panorama offers the following: “Reinsurers continue to enjoy a rich quoting language that allows them to express precisely what capacity they would like to compete for at various prices along with subjectivities across layers and types of quoting (e.g. equal shares quotes). Reinsurers can offer capacity on Tremor Panorama as they do in the traditional market, only with much richer preferences that will be respected. Individual reinsurer quotes are blind, sealed and held private, allowing reinsurers to be as competitive as they can be without concern that their market strategy becomes public.”
Tremor also states that it works closely with reinsurance brokers on placements, which themselves play an important advisory role to help structure programmes, select appropriate counter parties, package and present the submission, manage final contracting, and more.
“Our role is to manage the technology that optimizes pricing and placing of programs so that nothing is left on the table as insurers seek a full fill of their program. Panorama offers brokers valuable features to help their clients take advantage of advances in online trading of reinsurance. Panorama is the perfect complement to the value brokers add – Tremor already has a technical integration underway with Lockton Re and more broker partnerships are expected soon.
“For cedents, using Tremor and their broker together delivers a powerful placement experience, 1+1=3! Once cedent recently remarked, “why wouldn’t I price and place my program with Tremor? It delivers everything I get today and much more, supercharging the placement process”.”
The company’s Chief Executive Officer (CEO), Sean Bourgeois, commented: “Tremor continues to innovate to dramatically improve the reinsurance buying process. While we celebrated placing $1 billion in 2020, we have much bigger goals for 2021. Panorama provides the ultimate platform to rapidly scale our marketplace, dramatically improving how insurers purchase reinsurance complementary to the broking process.”
So far, interest in Panorama has been high and Tremor has revealed that a number of significant 2021 placement commitments are already in place.
The bottom line, according to Tremor, is that it “has been focused on delivering real value through technology to the reinsurance market since launching its marketplace in 2018.
“Optimizing for a uniform clearing price while allocating limit subject to reinsurer constraints was a challenging problem to solve, requiring a team with a deep understanding of market design, economics, game theory and computer science. Tremor solved this problem in a robust way in 2018 and is now proud to release further advancements to its original platform to perfectly suit market needs, without requiring participants to conform to standardize their submissions or data, duplicate the entry of information into yet another system or learn how to use complicated new software which adds dubious value, if any at all.
“Tremor believes that new reinsurance technology must dramatically improve the speed, quality and competitiveness of reinsurance placement execution with measurable, real results perfectly suited to market needs – Panorama delivers this in every dimension.”