Tremor Technologies, the insurtech with a technology-based programmatic insurance and reinsurance risk transfer marketplace, has experienced strong demand in the run-up to the renewals, with more than $700 million of reinsurance capacity sought from its platform by clients in May 2021 alone.
Tremor has been quietly making significant progress on signing up new clients and markets, resulting in a significant amount of demand for protection through its Tremor Panorama platform.
Tremor launched the next-generation risk trading platform, Tremor Panorama, earlier this year, enhancing the tools available to buyers and giving them a view of the market of competitive quotations before they bind risk capacity at their chosen price.
At the same time, Tremor Panorama allows reinsurance capital providers on the other side, including insurance-linked securities (ILS) players, to quote precisely how they want to, including any preferences they want to apply.
The new platform has driven more engagement for Tremor on both sides of the trade, with increased demand for reinsurance capacity and an increase in the amount of risk capital available to support those client demands.
With over $700 million of reinsurance capacity sought by buyers in May alone through Tremor Panorama, the insurtech company has now booked over $1 billion of placement commitments beyond that as well.
Driving this demand has been a doubling of the insurance company client base, so those buyers seeking efficient access to reinsurance protection through Tremor’s marketplace.
At the same time, Tremor has increased the number of reinsurance and ILS capital providers available through its platform to 105, which represents a roughly 20% increase in total capital available through Tremor Panorama.
Further reflecting thee strong growth and adoption being seen by Tremor, the company explained that, among new client wins it has signed agreements with a top-10 U.S. insurance company, a top-3 global property & casualty insurance company, a number of innovative insurtech carriers and several specialty insurance carriers.
All of these are going to to place reinsurance programs using Tremor’s Panorama platform, demonstrating the range of risks becoming available through the marketplace.
Importantly, Tremor also highlighted today that it now has agreements with every major reinsurance broker in every major reinsurance market around the world.
This is absolutely critical, as it reflects increasing understanding among the reinsurance broking community that this all-important last piece of the reinsurance transaction puzzle, the actual matching of risk to capital and its syndication to markets based on rich preferences and supply-and-demand factors, is actually a real benefit to the broker community, as technology can perform this task particularly effectively.
Reinsurance brokers with an agreement with Tremor are able to directly access the platform via their insurance company clients and every placement in the current quarter were managed in partnership with reinsurance brokers, Tremor said.
Sean Bourgeois, Tremor’s Founder & CEO, commented on the growth at the company saying, “We couldn’t be more thrilled with the rapid adoption of Tremor Panorama – insurance companies are reporting faster, better and more competitive reinsurance placements with much richer data – and they really appreciate the tools we offer to manage long term relationships. Reinsurers are drawn to the Tremor platform to access more risk more efficiently with more data while authorizing their capacity in sophisticated ways whereby their capital is outstanding for far less time. We are encouraged that every major reinsurance broker now has an account with Tremor and all are actively using the system to place hundreds of millions of dollars of limit in partnership with their clients.
“Overall, it’s clear that the market is voting for Tremor to play a fundamental role in the pricing and placing of a wide range of reinsurance now and into the future powered by our modern trading technology.”
Tremor noted that any reinsurance placement using its platform takes less than three days and that’s with contract certainty finalised up front.
In every case, Tremor said that placements on its platform have been wrapped up, with all lines signed well ahead of each renewal date, which is key as reinsurance renewal cycles remain extremely busy for brokers, markets and many support industries.
Looking through the rest of this year, Tremor says it “expects to increase its placement volume by 300% as it continues to onboard more insurers and reinsurers every month.”
Tremor is helping to facilitate protection buyers access to a broad panel of reinsurance capital on their own terms, while allowing the reinsurers to bid on their terms as well, with technology intelligently matching the two.
The company explains exactly what this means, including why Tremor feels helping re/insurers to own their participation, their data and to enter into risk transfer on the terms they choose, to suit their business models is important.
Tremor remains focused on delivering real, measurable value – meaningful price and cost efficiency driven by modern technology. The company believes that this focus is the reason behind the rapid adoption of its platform this year. Securing more efficient access to capital does not require standardization, harmonization or homogenization of the presentation of risk, however.
Tremor believes that insurance companies want to fully own their data and control how they package their risk to present their unique book and their unique approach to underwriting and operations, while reinsurers want to quote and authorize in confidence subject to their requirements for the portfolios they are building. Anything that gets in the way of this adds drag and cost to the system, disadvantages insurers and makes the market less efficient.
Tremor Panorama ensures that insurance companies are not forced to standardize while gaining the benefits of modern trading while reinsurers get access to more risk more often – all while accounting for the importance of long term trading relationships.
At the end of the day, it should be all about making the transit of risk along the market chain much more efficient, while reducing friction and lowering cost, but still enabling participants to bring their own value to that chain and express it in formats that suit them.
Remaining focused on the matching of risk with capital, using advanced marketplace technology and providing the tools and methods through which buyers and markets can express their rich preferences, to control their participation as they want to, seems to be paying dividends for Tremor, as its continued traction shows.