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Tremor caps off 2020 clearing $1 billion despite challenging market conditions

December 21, 2020

Tremor Technologies is thriving in the midst of a hardening reinsurance market, and heads into 2021 with broadening momentum.

Proving that Tremor’s tech is truly market agnostic

The value of Tremor’s reinsurance risk transfer technology has now been field-tested in soft and hard market conditions, bringing efficiency, transparency, and speed to the reinsurance placement process. In soft markets, Tremor’s technology gives cedants the ability to easily expand panels to enhance competition, and in hard markets Tremor quickly provides valuable price discovery when it is otherwise difficult to gather because market participants are holding their cards very close. Showing value for cedants across the gamut of market conditions is an important milestone for Tremor.

Reaching $1bn in limit placed

Tremor has now exceeded $1 billion in limit placed and given its pipeline, it is on track to significantly grow again in 2021. In addition, the firm launched two new marketplaces in 2020, supporting Live CAT trading and ILW auctions. Tremor ended the year by completing a property catastrophe tower placement for W. R. Berkley Corporation. By using Tremor’s platform, Berkley not only optimized pricing, but also learned exactly how much capacity was available at thousands of price points for their program. Tremor has now completed over 15 auctions.

According to Tremor CEO, Sean Bourgeois, “Tremor performs in every market cycle delivering robust reinsurance placements with competitive clearing prices in either soft or hard markets. By incorporating market feedback, Tremor’s flexible technology has evolved the offering since the company’s inception, which now allows for complex subjectivities and provides instant aggregate visibility to help cedants confidently answer one question: ‘How do I know what I paid was the right price?” Like efficient markets elsewhere, the answer is transparent: “Because that is where supply met demand.”

Working in cooperation with brokers to optimize outcomes

Using Tremor doesn’t mean you need to abandon relationships or your broker. Especially in today’s market, brokers provide important value in the management and efficient completion of transactions. We believe that by leveraging Tremor for pricing and allocation, brokers can focus on the aspects of the transaction where math cannot provide a solution.

Partners and investors continue to validate Tremor’s importance in the market.

Lockton Re’s SAGE™ platform now integrates Tremor’s pricing optimization technology. A top 3 global broker recently signed with Tremor. Since its formation, Tremor has raised a total of $15 million from investors, including a new funding round that closed this fall.

Democratization of the placement process

A key impact of Tremor’s technology has been the democratization of the placement process for cedents and reinsurers. “Over the last 18 months, we have seen the number and the mix of reinsurers change significantly program to program for cedents open to panel flexibility. Leading reinsurers compete on equal terms with small reinsurers and syndicates who have won outsized shares on programs than they might have otherwise. Cedents access more capital, broader participation and faster, better and more competitive execution,” said Bourgeois.