Expansive programmatic re/insurance risk transfer marketplace, Tremor, has now secured agreements with eight major reinsurance brokers representing more than 95% of global placements.
Since the introduction of its next generation trading platform, Panorama™ in February, Tremor’s growth has exceeded expectations.
In June, Tremor reported that insurers leveraging its platform sought over $700 million in capacity from reinsurers in the month of May alone.
Currently, there’s 110 reinsurers, insurance-linked securities (ILS) funds and Lloyd’s Syndicates active on Tremor, while the company has commitments in place to triple its volume for 2021.
In fact, Tremor says that it now receives several inbound inquiries each month from across the sector as brokers, cedents and reinsurers look to do more with Tremor’s modern trading efficiencies.
Sean Bourgeois, Tremor’s Founder and Chief Executive Officer (CEO), commented: “We have said from the beginning that Tremor supercharges risk transfer with a new market model that benefits all parties. In a Tremor placement, reinsurance brokers focus on advisory, structuring and coordination of counterparties. Tremor supercharges pricing and allocation with faster, better and more competitive execution with modern trading technology. Pricing and allocation is much better managed with this technology – as is the case in every major capital market around the world.
“Does this change the broker’s current role? Sure. Does it disrupt reinsurance? Let’s be candid, it does. But for the better. Cedents get better execution, reinsurers see more risk more often with capital committed for far shorter periods of time exactly as they want it committed. Brokers get to focus on where they add value most and Tremor supercharges everything with a superior market model. Everyone wins.”
Root, Inc. successfully placed its June property catastrophe program with Tremor, and was reportedly impressed with the efficiency of the reinsurance placement.
“Panorama is the natural evolution of Tremor’s technology. But this isn’t where we stop, this is where we start. We are continuing to build major new features that do things the traditional market simply cannot – for buyers that want to compare pricing for various peril, structure and treaty combinations to show their CFO precisely how they are optimizing their purchasing in real time, Tremor is delivering.
“Brokers initially took to Tremor slowly, seeing our technology as a threat. But what we have found over time is that as cedents ask their brokers to deliver placements with Tremor, brokers quickly see the benefits we deliver to them and their clients in ways that simply cannot be replicated with the traditional process. We believe this has been a key factor to the rapid adoption of every major broker this year,” continued Bourgeois.