Blog - Nov 17, 2022
As a reinsurer, Tremor’s powerful authorization tools uniquely allow you to control your allocation while having a strong voice in the placement process. We recently discussed how to use supply curves to control your allocation and how Tremor gives you a stronger voice in the placement process – in this post, we will focus on excess of loss (XoL) towers and highlight a few of the the higher-level strategies that Tremor’s authorization tools make possible, including:
Blog - Oct 13, 2022
Reinsurers are price takers in the firm order terms (FOT) process. The cedent sets pricing and then solicits authorizations from reinsurers – while coverage terms may be negotiated, prices are held firm. Even when reinsurers are invited to quote before terms are set, final pricing is driven largely by broker models and advice. Pure price-taking is a compromise in any market. It simplifies the process but limits the breadth of ways that buyers and sellers can come to terms.
Blog - Sep 8, 2022
Have you ever wanted to explore Tremor or see what the experience is like for the other side of a transaction? We’re excited to announce self-driven demos that let you go hands-on with Tremor and simulate transactions. Our self-driven demos let you step through a Panorama transaction as either a cedent or a reinsurer. You can use them to practice, to see how specific features work, and even to experience Tremor from the other side of the transaction.
Blog - Jul 14, 2022
Panorama dramatically speeds up the placement of reinsurance. Consider the following statistics from Tremor’s placements: Reinsurers who participated on Tremor learned their final lines within three business days of submitting their authorizations. Cedents who placed with Tremor finalized coverage in five business days from the time Tremor started collecting authorizations, without having to invest time to set firm order pricing. By comparison, a traditional firm order terms (FOT) process often takes more than a month to resolve the same issues.
Blog - Jun 15, 2022
Concurrency is central to the “firmness” of a traditional firm order terms (FOT) process, yet it leaves cedents and reinsurers alike thinking they see opportunities left on the table. In reality, these opportunities are a mirage – without concurrency they disappear, leaving in their place an expensive process that struggles to match the performance of concurrent terms. So why do cedents see opportunities, and why do those opportunities disappear? We will see that the answer, witnessed in analogous markets across a wide variety of industries, lies in game theory – for a reinsurer, to be paid far below the rest of the market is leaves money on the table risks undermining their own portfolio; when cedents relax concurrency, reinsurers who would otherwise have been competitive typically protect themselves by offering less-favorable terms than they would be willing to accept as concurrent FOT.
Blog - May 17, 2022
Tremor’s supply curves and market clearing technology give reinsurers more control over their final lines. As a reinsurer, as soon as a renewal lands on your desk you typically know what you want. Unfortunately, the road to your final line is long. The cedent’s firm order terms – if they are even set when the submission first arrives – will be extrapolated from models and selected reinsurer input. Invariably, these extrapolated prices will be imperfect, and finalizing the placement will require sign-downs or other adjustments.
Blog - Apr 14, 2022
Insurance companies worry about finding reinsurance that works for their businesses. In today’s hard market this concern is palpable. Without clear information about what the market will bear, we see many cedents tightening their reinsurance buys, limiting the options that they consider, and driving hard on the cost of what they do buy. Through all this, opportunity is lost. Variations that might be profitable for cedent and reinsurer alike are never explored.
Blog - Mar 15, 2022
What is Tremor’s new Panorama placement process? What are the benefits for reinsurers and cedents? How does it address fundamental shortcomings of firm order terms? Whether you are new to Tremor or a veteran user, read on to learn more about how Panorama modernizes reinsurance placement. The key to process is getting it just right – too little, too much, or even the wrong process can turn a straightforward task into a herculean effort, while a good process can make many of the most complex tasks feel simple.
Blog - Feb 17, 2022
As a reinsurer, one of the most valuable things you get when you use Tremor is post-transaction data – Tremor’s market map gives you a clear report of how all of the other reinsurers were pricing the risk and what the cedent chose to buy. Even the insights from a single transaction can be invaluable to you as you price other coverage during a busy renewal season. For this article, we’ll use an example from one of our demos.