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.

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.

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.

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.

Today’s hardening market is challenging for so many reasons. Reinsurers are suffering from catastrophe fatigue and Covid losses. They are projecting rate increases but their rate expectations are not uniform. Primary insurers may decide to retain more risk rather than pay higher prices for protection, despite the fact that this would increase capital constraints. By far, the worst part about today’s hardening market is the uncertainty that comes from a lack of coordinated information.

How and why do reinsurers work with Tremor? Our reinsurance partners gain tangible benefits by using Tremor’s innovative risk transfer platform. Tremor works hard to continue delivering value to them. Tremor presents reinsurers with more risk more dynamically with modern trading features. When a reinsurer is invited to quote on a placement, they logon to Tremor’s platform, review the placement details and decide if they’d like to participate. They can review multiple placements quickly, with the contract, terms and conditions all organized in one place.

This week, the 2020 Nobel Prize in Economics was awarded jointly to Paul R. Milgrom and Robert B. Wilson “for improvements to auction theory and inventions of new auction formats.” The award highlights the power of auction technology to solve real-word problems. Mechanism design, which includes auction design and related topics, has received considerable attention from the Nobel committee, which previously awarded the prize to Al Roth and Lloyd Shapley for their work in 2012.

Reinsurance purchasing is a huge black box for management teams. There is no way of knowing the market clearing price for protection. Instead, reinsurance purchasers determine pricing with individual negotiations, incomplete data and educated guesses. So executives spend millions of dollars on protection without complete market information. This is just one of the five key mistakes made by reinsurance buyers. Tremor Technologies helps reinsurance buyers avoid mistakes like this by leveraging our “smart market” platform to price and clear transactions competitively.

As Hurricane Laura moved towards landfall, Tremor was busy offering hedging capacity to the marketplace. We started receiving calls early that morning from buyers looking for hedging tools and sellers wanting to supply capacity. We saw the market need and acted, scheduling auctions for that afternoon. The $10B, $20B and $50B named storm ILW auctions were scheduled at 3, 5 and 7pm ET on Wednesday. “With Laura’s rapid evolution, the buyers and sellers contacting us were trying to get a pulse on the market and see if there was appetite to drive live cat trading – the current market is really opaque, and participants were grasping for signs of life before taking action themselves,” explained Chris Wilkens, Chief Product Officer at Tremor.