Tremor Technologies, the insurtech company that offers a technology-based programmatic insurance and reinsurance risk transfer marketplace, is set to make its marketplace available for every major hurricane threat, with live cat auctions set to be run by the insurtech, including today for hurricane Sally.
Hurricane Sally is heading for a northern Gulf Coast landfall tonight or into tomorrow and in response to this Tremor is set to run three live cat auctions, which will offer protection buyers a chance to secure last-minute industry loss warranty (ILW) trigger based capacity, while reinsurance and insurance-linked securities (ILS) capacity providers can bid to provide the protection.
Tremor notes that with five named tropical storms currently churning in the Atlantic basin, “live risk transfer is needed.”
“Tremor stands ready to assist the industry with live risk transfer during significant hurricane events. For re/insurers and ILS funds looking to buy protection discreetly, the Tremor marketplace is the ideal venue.
“We spun up a market for Hurricane Laura and we commit to do so for all hurricanes in the 2020 season, one of the most active seasons ever,” explained Sean Bourgeois, Tremor’s Founder & CEO.
Tremor’s live cat auctions provide a simple marketplace venue for buyers and sellers of protection to meet, efficiently able to close trades while a hurricane is live and in the water.
Protection buyers and sellers are able to choose from an industry loss trigger for the specific named storm and enter their bids anonymously.
Tremor will offer several live cat ILW auctions each day during a catastrophic weather event, with each auction run and closed in a matter of minutes, reporting the clearing price and the syndication immediately.
Tremor’s utilises simple contract wording that is available online and partners with PCS on industry loss trigger reinsurance and risk transfer instruments, with PCS acting as third-party validation for the industry loss.
“For the remainder of the hurricane season, the industry can count on Tremor to stand up live auctions on any day that a hurricane is likely to make landfall in the US,” the insurtech explained.
For hurricane Sally, which is bearing down on the Gulf Coast, Tremor intends to run three auctions today, one at 9am ET, another at 12 noon ET and a final hurricane Sally auction at 5pm ET.
As with all of Tremor’s live cat auctions, the company will run the auction immediately and report clearing prices and allocations shortly after each closes.
Tremor recently ran live cat auctions for hurricane Laura and although no trades occurred, as Laura’s track veered away from higher value Houston, the exercise demonstrated that technology can help protection buyers secure last-minute reinsurance and hedging capacity, utilising a modern marketplace.
Tremor recently announced that it has now completed an impressive 15 reinsurance auctions since its launch and has recently raised an additional $4 million in venture funding to facilitate further growth.