Reinsurance pricing and placing platform, Tremor Technologies, has launched a new division called Tremor Public, designed to address pressures facing residual insurance markets which are publicly funded insurers of last resort, when coverage in the traditional market is unavailable to consumers and businesses.
As highlighted by Tremor, residual insurance markets have been under increasing pressure and last year this intensified.
The issues in the Florida property marketplace have been discussed widely in the media over the past year or so, but residual markets across the U.S., including key markets in California, Louisiana, and Texas, are on alert amid last year’s traditional reinsurance market failure.
In fact, Tremor reports that, last year, some residual markets only managed to secure half of the coverage they sought which led to multi-billion dollar shortfalls as a result of the failure of the traditional placement process. This includes, according to Tremor, extremely poor price discovery and an inability to easily see the most complete, competitive market and incremental additional cost in a transparent way.
“The traditional reinsurance placement process simply did not work in a market failure not seen since 1993. 2023 will be different. Tremor is looking forward to bringing transparency powered by technology with pricing driven by competitive market forces to publicly funded institutions which have a fiduciary responsibility to deliver the price efficiency the taxpayers that fund them deserve,” said Sean Bourgeois, Tremor Chief Executive Officer (CEO).
Tremor’s key value proposition is complete transparency with a price discovery process powered by competitive market forces and modern trading technology. The company’s tech offers publicly funded residual markets to see the entire marketplace for their placement, and makes sure that it both prices and allocates optimally with complete visibility into incremental cost.
Today, the firm also announces that former U.S. Senator Benjamin Nelson will play a critical leadership role, helping to advise Tremor as it builds its public entity reinsurance business.
Nelson previously served two terms in the U.S. Senate representing the State of Nebraska, two terms as Governor of Nebraska, and one term as Director of Insurance for Nebraska. He also previously served as CEO of the National Association of Insurance Commissioners (NAIC). He continues to be very active in the insurance sector, currently serving as CEO of a group of insurance companies.
“Tax payer funded, not for profit insurance companies deserve full transparency for their substantial reinsurance purchases – true market clearing prices that the public can understand powered by competitive market forces, exactly what Tremor delivers!”, added Bourgeois.
It’s been a busy start to the year for Tremor, with this latest announcement coming soon after the launch of Tremor Issuer, an online catastrophe bond issuance platform, and the firm’s cross-placement optimization tools.
