Tremor launches cat bond issuance platform
Reinsurance pricing and placing platform Tremor Technologies has launched a cat bond issuance platform called Tremor Issuer.
The new platform is powered by Tremor’s Panorama marketplace technology, which allows investors to bid on bonds through confidential expression of their preferences on price, quantity, and other contingencies.
Tremor Issuer will then compile the entire investor market for the issuance to reveal aggregate supply.
This allows the issuer to see the entire version of the market for their bond to help negotiate an optimal price.
Tremor has said this platform takes the issuance process to hours from weeks and months under traditional processes.
Tremor Capital Markets LLC, a new regulated subsidiary of the insurtech, has been set up to offer the new cat bond issuance platform as an introducing broker.
Sean Bourgeois, Tremor’s CEO, said: “In the last two weeks alone, we have seen four cat bonds price 15 percent or more below initial guidance.
“While this signals more capital coming back into the market which is great to see after last year’s market challenges, it also confirms that the original guidance for these bonds was extremely poor.”
He added: “The clearing price of a bond issued today is determined when the phone gets put down, not by economics. Tremor Issuer will vastly improve price discovery and allocation for the issuance of cat bonds as we work with all sides of the industry to modernize the cat bond market.”
Its launch comes after AM Best said that changes in terms and conditions seen at 1.1 in the ILS market will continue to move in favour of capital providers at the 1 June renewals.