Tremor, the programmatic insurance and reinsurance risk transfer marketplace, has announced that a suite of new features will be made available in version 2.0 of its programmatic marketplace from November.
Features include new quoting tools that allow cedants and reinsurers to more precisely express their terms, aggregate reports that offer insight into transactions and the wider market, and a portal enabling brokers to leverage Tremor’s marketplace on behalf of 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,” said Sean Bourgeois, Chief Executive Officer (CEO) at Tremor.
“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,” he continued.
Specifically, reinsurers using Tremor’s standard quote method will now be able to add subjectivities after expressing supply curves and capacity limitations.
With subjectivities, one layer may subsidise another to maximise a reinsurer’s allocation while ensuring the aggregate price still meets the company’s needs, Tremor explained.
“Subjectivities give reinsurers the power to precisely manage the composition of their allocations,” said Chris Wilkens, Tremor’s Chief Product Officer.
“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,” he added.
Alternatively, reinsurers who wish to tie layers together can submit an equal shares quote, stating the share of the program it would like to cover based on the blended rate on line, along with optional layer price guardrails.
“The Tremor platform is uniquely capable of supporting these new expressive quoting features due to the sophistication of our market design and optimization methods,” said Chief Technology Officer (CTO) Ben Lubin.
“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.”
Tremor says the new quoting features will flow natively into its proprietary matching engine, which is designed to contemplate all the complex quotes received to determine true market clearing prices.
In terms of benefits for cedants, version 2.0 of the marketplace will allow them to state a program budget with price guidance for individual layers, enabling Tremor to shift the cedant’s spend between layers while guaranteeing that budget is not exceeded.
Tremor will also now report aggregate supply to cedants and reinsurers, helping cedants to optimise their reinsurance structure and risk kept on the books, and giving all parties insight into the capacity available in the market.