Logo Tremor

Tremor Brings $600 million of Capacity to Successful Renewal of Berkley’s Property Catastrophe Program

December 10, 2019

Marketplace now includes more than 100 reinsurers as members.

Tremor, the leading programmatic marketplace for insurance and reinsurance risk transfer, has now exceeded more than $2 billion in reinsurer quotes and now counts more than 100 reinsurers, Lloyd’s syndicates and ILS funds as members of its marketplace.

Last week, W. R. Berkley Corporation successfully priced and placed the renewal of its 2020 Property Catastrophe Program on the Tremor marketplace. More than 50 reinsurers from all major markets participated with $600 million of capacity made available by Tremor for the renewal.

The process was extremely efficient: reinsurers received submission materials, the contract was negotiated and finalized in advance and the Tremor quoting window was open for several days. Reinsurers logged in and submitted blind sealed bids during the quoting window with several taking advantage of Tremor’s new advanced quoting capabilities. After the quoting window closed, within a few hours, the final results were reported to all sides of the marketplace. The final clearing price per layer and each reinsurer’s precise allocation were reported and lines were ready to sign.

“Completing our first renewal on Tremor really emphasized the benefits of the platform. This year, with less time spent on the education process, the timing efficiency gains were more obvious, highlighted by the fact that the entire program was priced and allocated before Thanksgiving. Tremor’s enhanced technology, which included additional features as suggested by reinsurers during our placement process last year, performed well and we are pleased with our outcome- both in terms of cost as well as the broader distribution of reinsurance partners that received a share of our placement.”, said Melissa Emmendorfer, Senior Vice President, Insurance Risk Management at W. R. Berkley Corporation.

For the Berkley renewal, the large panel provided for a diversity of reinsurers including a large number of London market participants, ILS funds and a large number of smaller reinsurance companies participating.

“We like the approach to quoting on Tremor for certain transactions and find the process extremely efficient. In particular, it’s great to be able to offer capacity and get the resulting signed lines the next day! In addition, we find the insight that we gain into the broader market view after the placement is completed to be very interesting and valuable.”, said Dr. Hilary Paul, Partner at LGT ILS Partners, on behalf of Lumen Re (Bermuda).

In a hardening market environment and with the retro marketplace in particular tightening, early and efficient placements on Tremor can be that much more attractive.

“After successfully executing Berkley’s property catastrophe placement last year, it was really exciting to price and place the program this year as Tremor’s first major renewal. We are thrilled with the results. We saw more reinsurers participate, more capacity made available and more capacity authorized with almost no support questions during the quoting process. Our advanced quoting features were utilized and despite a hardening market, we were able to find competitive market clearing prices and compute limit allocations in a matter of hours that met everyone’s expectations”, said Sean Bourgeois, CEO of Tremor.

Tremor is looking forward to an active renewal season with a range of auctions planned this month and a further $1 billion of limit committed from traditional treaty and facultative reinsurance programs, ILW placements and parametric transactions. The company is expecting to triple its volume in 2020.