TigerRisk Partners has transacted the first electronic secondary reinsurance trade using Xchanging’s X-gRm platform.
According to Xchanging, accessing the secondary market through X-gRm may also be attractive to buyers looking for a quick and easy way to participate in reinsurance risk.
Xchanging believes development of the secondary market will also benefit sellers.
Buyers gain the ability to quickly and efficiently trade in and diversify their portfolios and sellers, meanwhile, benefit from an easy way to trade out of a position and seek a better allocation of their capital, according to Xchanging.
Rod Fox, CEO of TigerRisk, commented on the trade: “Executing secondary reinsurance trades in ‘a live market environment’ provides a host of benefits. It adds liquidity, increases volume and speeds transactions—something we’ve wanted to achieve in catastrophe reinsurance for a long time. In addition, it opens an easy-to-access, pre-qualified channel for buyers.”
Nick Lamb, director of broking services at Xchanging, added: “Expanding the use of X-gRm to the secondary marketplace is a significant step for this multi-broker platform, and we’re convinced this will become an integral facility of the platform.”
