Tremor Technologies Inc., a venture-backed startup based in Greenwich, Conn., said its reinsurance “smart” market platform is open for business.
The company refers to its product as a programmatic risk marketplace, noting it is operational with “significant” buyers and sellers of reinsurance and insurance protection in place. It is billed as a smart market designed to establish fair and efficient market prices for reinsurance risks and programs, resulting in more efficient price formation for insurers, reinsurers and intermediaries.
Tremor said that risk is allocated to maximize the net benefits of risk transfer. Participants set limits on exposure within and across programs and place bids indicating the quantities desired to sell or buy over a range of prices. With these inputs, the market platform uses optimization to find and execute the best allocation of risk and compute competitive clearing prices for settlement.
“We maximize value for both sides of the market and then fairly share that value among participants with competitive clearing prices,” Peter Cramton, Tremor’s chief economist, said in prepared remarks.
Tremor asserts that it fits seamlessly into current workflows. Programs prepared by brokers and cedents are placed on the platform with contracts and submission files in virtual private data rooms. Reinsurers approved by the cedent review and evaluate the programs, then submit private, sealed bids to an auction. The auction then matches capital to risk and reports the final trades and prices to be settled.
Sean Bourgeois, Tremor’s founder and CEO, said in prepared remarks that the startup’s “world-class market design, product and engineering team” has been busy over two years “building a tremendously powerful marketplace in direct partnership with market participants.
He said that Tremor’s approach “lets intermediaries focus on their highest-value activities, such as program design, bidding strategy and analytics, while we focus on pricing, allocation and placement with technology.”
Brokers will also be welcomed as programmatic traders, with access built for them to manage client accounts, Bourgeois added.
He said the startup “has raised meaningful venture capital” but did not disclose the specific amount.
Tremor said it is actively bringing on many buyers and sellers and has auctions planned for the fourth quarter this year.
Source: Tremor Technologies