Insurtech outfit Tremor Technologies is looking to tap the potential in the residual insurance markets with the launch of a new division.

Dubbed Tremor Public, the division will address challenges in the residual insurance markets that serve as publicly funded insurers of last resort.

Former US Senator Benjamin Nelson will play a major leadership role and will help the firm further develop its public entity reinsurance business.

Tremor CEO Sean Bourgeois said: “Tax payer funded, not for profit insurance companies deserve full transparency for their substantial reinsurance purchases – true market clearing prices that the public can understand powered by competitive market forces, exactly what Tremor delivers!”

The firm also stated that it has been holding discussions with residual industry players across the US including major markets in California, Florida, Louisiana and Texas amid turmoil in the residual markets.

Last year, residual markets experienced immense pressure, stated the firm.

Some of the markets received half of the coverage they sought, triggering multi-billion-dollar losses due to the collapse of the conventional placement procedures, among others.

Tremor’s technology has been designed to enable publicly funded residual markets to monitor the entire marketplace for their placement.

Bourgeois added: “The traditional reinsurance placement process simply did not work in a market failure not seen since 1993. 2023 will be different.

“Tremor is looking forward to bringing transparency powered by technology with pricing driven by competitive market forces to publicly funded institutions which have a fiduciary responsibility to deliver the price efficiency the taxpayers that fund them deserve.”

Last month, Tremor introduced a new cat bond issuance platform that can be accessed online by investors, issuers, bankers and brokers.