Blog - May 20, 2020
Market Summary Tremor’s weekly ILW (industry loss warranty) market is growing. In its first six weeks, Tremor has seen an average of more than USD 60M capacity offered and USD 30M of protection requested. Spreads have fluctuated, with the best buy and sell prices converging to produce a successful transaction for US wind and earthquake risk. Spreads are narrowing, and activity is expected to increase going into June and July.
Blog - Jan 13, 2020
As Tremor closes the books on 2019, we pause to take a look back at the performance our marketplace achieved for cedents. We publicly announced top-line statistics back in December – more than 100 clients signed up on both sides of the market and more than $2 billion in priced capacity. The graph below highlights the experience of cedents who placed their treaties through Tremor, compressing the pricing and placement into a short auction that completes in less than 5 days.
Blog - Dec 9, 2019
Short placements tell us about the additional price margin reinsurers build into their authorizations. Last time, we used oversubscription to measure inefficiency, but we know what many of you who read our analysis were thinking – my broker does a great job and my program always starts as a short placement, particularly in the current hardening market. If this is you, on the surface it sounds like you are getting a great deal.
Blog - Oct 25, 2019
Oversubscription happens in a reinsurance program when the capacity needs of the buyer – the cedent – are exceeded by the capacity offered by the sellers – the reinsurers. It is a basic economic phenomenon that if a product sold-out while there were still more parties willing to buy it, then alternatively the product’s price could have been raised to the point where it sold-out at the exact moment when all buyers had purchased their fill.