Tremor Technologies, the programmatic risk transfer platform, has priced and placed the first ever programmatic parametric swap transaction in insurance form.
The insurtech start-up has already priced and placed a number of catastrophe reinsurance programs beginning at the end of 2018, but has moved into new territory with this latest deal.
Tremor provided an auction and market to enable one of the largest global insurers to lay-off some of its parametric catastrophe risk as a swap, but in insurance form.
The undisclosed insurer used the Tremor platform to lay off part of a greater than $100 million layer of multi-year parametric risk in a programmatic manner to multiple risk markets.
More than 15 markets participated in bidding to take on some of the parametric risk, with the outcome being an insurance compatible contract.
Tremor reportedly completed the transaction in a relatively short time-frame, suggesting that its platform is ready to support other new contract types in future, such as auctions for industry low warranty (ILW) based capacity, as well as direct and facultative placements.
“Tremor is very excited to announce that it has completed its first significant parametric auction with a major global insurance brand,” said Sean Bourgeois, Chief Executive Officer (CEO) at Tremor.
“As our tech is extremely flexible we are able to move between transaction types and forms across the re/insurance and alternative capital spectrum very easily which made completing this trade very simple,” he explained.
“We expect further deal flow on the back of this transaction in addition to the pipeline of indemnity placements we have scheduled.”
The announcement follow’s Tremor recent decision to hire a team of market designers that have previously advised governments, industry groups and leading companies.