Tremor Technologies, the insurtech with a technology-based programmatic insurance and reinsurance risk transfer marketplace, has announced the launch of Tremor Fetch ™, a feature that will enable placement participants and the ability to track the equilibrium price of the consensual market.
Tremor Fetch ™ offers reinsurance companies and capacity providers participating in placements on Tremor’s market platform the ability to automatically track the compensation price for the risk layers placed, which means they can offer the capacity they want at the found compensation price.
This is a really exciting addition to the Tremor risk transfer and reinsurance marketplace platform and its launch follows new features including: Tremor X-Ray ™, a user-friendly feature that allows filtering reinsurance capacity and pricing and analyzed in real time; as well as the Tremor Blackboard ™ real-time collaboration tool allowing remote and global teams to work together on their reinsurance investments; and the launch by Tremor of its Marketplace 2.0.
Why is Tremor Fetch interesting?
Because there are already players in the reinsurance market who follow the guide price on investments, but with Tremor, the price followed is the compensation price, the real market consensus for a layer of risk.
Tremor’s Fetch functionality allows reinsurance capital providers to authorize the next capacity and automatically receive their line at the compensation price chosen by the ceding company, subject to any predefined constraints.
Capital providers using Fetch can make their minimum price explicit, as well as the maximum share they would be willing to receive.
In addition to a suite of authorization subjectivities, Tremor now offers nearly 120 participating reinsurers “precise capacity authorization capabilities in a secure online environment,” the company said.
“2021 has been an incredible year for Tremor both in terms of product adoption and the development of our product itself. The launch of four major releases following the Panorama rollout in February has been thrilling to see and members of the Tremor Marketplace really appreciate the continued addition of new features to improve their buying and selling experience – in fact, quite a few. our latest functionalities have been developed in close collaboration with insurers and reinsurers ”, commented Sean Bourgeois, Founder and CEO of Tremor.
This new feature is a great addition and a useful feature for reinsurers and capacity providers who do not have the confidence to bid or who cannot perform a full risk layer analysis on their own. reinsurance, and would therefore prefer to follow the market leaders.
It’s common to follow pilot markets in places like Lloyd’s, where small unions and capital providers often can’t lead and set price discovery on their own.
This means that they can always be sure that they are engaging in programs at the best possible price, as the price is set on the basis of genuine risk appetite and the dynamics of the market supply. , delivering a clear price consensus.
Based on market consensus, pricing should be preferable to publishing lines based on a single primary notice or algorithm, which could also help cedants secure their capacity more easily if they go through Tremor’s platform. .
This type of consensual market-monitoring technology could also be of interest to large investors looking to allocate themselves to layers of reinsurance, or even to ILS funds.