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.

Lockton Re, the global reinsurance business of the world’s largest privately held independent insurance broker and Tremor Technologies have partnered to deliver modern reinsurance trading capabilities to Lockton Re clients. Lockton Re’s SAGE™ platform now integrates Tremor’s pricing optimization technology. The result is a programmatic option for the execution of syndicated reinsurance programs. SAGE™, Lockton Re’s proprietary software platform, helps insurers better understand risk impacts with a comprehensive and transparent view of all possible risk transfer structuring options.

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.

For only the second time in recorded history, five named tropical cyclones are churning in the Atlantic at the same time, with Hurricane Paulette impacting Bermuda yesterday. “Tremor stands ready to assist the industry with live risk transfer during significant hurricane events. For re/insurers and ILS funds looking to buy protection discreetly, the Tremor marketplace is the ideal venue. We spun up a market for Hurricane Laura and we commit to do so for all hurricanes in the 2020 season, one of the most active seasons ever,” said Sean Bourgeois, Tremor’s Founder & CEO.

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.