Tremor Technologies, the leading online reinsurance marketplace, has launched its next generation trading platform, Panorama™. Tremor recently surpassed $1 billion in reinsurance risk priced and placed with its technology with nearly 100 participating reinsurance markets across a range of programs, structures and cedents. As the company has grown, its technology has evolved to perfectly match the needs of the reinsurance market - Panorama incorporates the company’s learnings and market requests over the past 24 months.
Supercharging Reinsurance Placement
Panorama builds on the success of Tremor’s original marketplace, underpinned with the same state-of-the-art auction and optimization technology and a coordinated, concentrated placement process to drive competition to get the best offers to fully place reinsurance programs without leaving anything on the table. With the same technical foundation, cedents will now receive 100x more data and much more pre-trade insight to make the best reinsurance purchase decision possible.
With Panorama, cedents can now find the best single market clearing price for each layer for each program in any market, hard or soft, extremely efficiently - reversing the trend of economically inefficient differential pricing and non-concurrent terms. There is a reason billions of dollars a month in U.S. government bonds are auctioned at a uniform clearing price as opposed to dozens of prices and quantities - a uniform clearing price has been proven to be much more price efficient and deliver more revenue to the issuer. Insurers should insist on the same to optimize the pricing of their reinsurance - Tremor Panorama offers technology to ensure competitive uniform clearing prices are found every time.
The Tremor Market Map™ - See the Whole Market
While the traditional reinsurance market combines indicative pricing and intuition, Tremor’s Market Map™ collects the entire “order book” from all placement participants - what price each reinsurer is willing to offer at each quantity subject to their own complex constraints. With Tremor’s Market Map, cedents can now see the whole market for their program - not indicative prices, not intuition, not guesswork. Real, bindable prices with incredible market intelligence to ensure insurers leave nothing on the table.
See Your Negotiating Position
One of the most popular feature requests has been the ability for the insurer to “see the market”, to see the entire order book before indicating the price they’d like to pay and the fill they could receive, subject to reinsurer preferences. Panorama delivers this functionality and more, allowing cedents to not only see the entire market, but to see their negotiating position before setting the price for their placement while individual reinsurer bids remain private - which allows reinsurers to compete without holding back.
Insurers see the complete distribution of prices from the market - real prices, not a model - to make intelligent purchasing decisions. Where is the market’s pricing midpoint, “the market consensus”? Can I fill my program at pricing better than “market”? Is there plenty of opportunistic capacity available that I should consider before setting my final price? Is there capacity available just beyond the price I want? What is the likelihood I can bring the market to the price I want? Now you know and now you can act on it with confidence.
Compare Contract Terms With Real Pricing In Real Time
Cedents are now able to compare real pricing for contract options in real time. For example, the real price difference between placing with or without pandemic coverage - without going back to the market to open up weeks of bilateral discussions. Panorama combines pricing and placement in a single step, allowing cedents to bind a program in days with a single click.
Another very popular feature request has been for Tremor to offer more flexibility to insurers to retain control of individual assigned lines by reinsurer, taking into account long term relationships, credit quality and more as part of the binding process. Panorama offers cedents these capabilities, putting cedents completely in control of the ultimate placement while seeing the whole market for their risk.
Panorama offers powerful optimization options to click to solve for a number of common scenarios to save insurers time to find optimal pricing and placement under a range of conditions powered by Tremor’s matching engine.
Panorama enables insurers to set up scenarios of price, fill, term selects and allocations to compare and contrast across each option. Panorama allows reinsurance buying teams to present a range of scenarios to their respective executive committees and then walk through each option and toggle any placement dimension in real time with instant price and fill impact to arrive at the best overall decision for your firm - in seconds, not weeks or months. No need to go back out to the market to renegotiate each change, with Panorama, it’s all here - see results immediately.
Pricing and Placing in One Step, Bind in a Single Click
Panorama delivers the same “bind in a single click” capability with even more flexibility. Insurance companies can now coordinate their placement in a matter of days and bind their program in a single click. Prices and allocations chosen by cedents are final and delivered for contract wording signature.
Panorama for Reinsurers
Reinsurers continue to enjoy a rich quoting language that allows them to express precisely what capacity they would like to compete for at various prices along with subjectivities across layers and types of quoting (e.g. equal shares quotes). Reinsurers can offer capacity on Tremor Panorama as they do in the traditional market, only with much richer preferences that will be respected. Individual reinsurer quotes are blind, sealed and held private, allowing reinsurers to be as competitive as they can be without concern that their market strategy becomes public.
Panorama for Brokers
Tremor works closely with reinsurance brokers on placements. Reinsurance brokers continue to play an important advisory role to help structure programs, select appropriate counter parties, package and present the submission, manage final contracting and more. Our role is to manage the technology that optimizes pricing and placing of programs so that nothing is left on the table as insurers seek a full fill of their program. Panorama offers brokers valuable features to help their clients take advantage of advances in online trading of reinsurance. Panorama is the perfect complement to the value brokers add - Tremor already has a technical integration underway with Lockton Re and more broker partnerships are expected soon. For cedents, using Tremor and their broker together delivers a powerful placement experience, 1+1=3! Once cedent recently remarked, “why wouldn’t I price and place my program with Tremor? It delivers everything I get today and much more, supercharging the placement process.”
The Bottom Line
Tremor has been focused on delivering real value through technology to the reinsurance market since launching its marketplace in 2018. Optimizing for a uniform clearing price while allocating limit subject to reinsurer constraints was a challenging problem to solve, requiring a team with a deep understanding of market design, economics, game theory and computer science. Tremor solved this problem in a robust way in 2018 and is now proud to release further advancements to its original platform to perfectly suit market needs, without requiring participants to conform to standardize their submissions or data, duplicate the entry of information into yet another system or learn how to use complicated new software which adds dubious value, if any at all. Tremor believes that new reinsurance technology must dramatically improve the speed, quality and competitiveness of reinsurance placement execution with measurable, real results perfectly suited to market needs - Panorama delivers this in every dimension.
“Tremor continues to innovate to dramatically improve the reinsurance buying process. While we celebrated placing $1 billion in 2020, we have much bigger goals for 2021. Panorama provides the ultimate platform to rapidly scale our marketplace, dramatically improving how insurers purchase reinsurance complementary to the broking process,” said Tremor’s CEO, Sean Bourgeois.
Early interest in Panorama has been high, with a number of significant 2021 placement commitments already in place. Please contact Tremor to schedule a personalized demonstration of the power Panorama can deliver for your next reinsurance placement.