inreon, the London-based electronic reinsurance trading platform, launched at the end of 2000 by Munich Re and Swiss Re, announced today that it was going out of business.
“Since the launch of the platform, the volume of risks processed via the platform has shown consistent growth,” said a corporate bulletin. “However, the total number of risks transacted remained low compared with total market volumes and fell significantly short of targets initially set by inreon.”
Despite apparent success, the company said that “more than 130 international companies from across Europe, North America and Asia” had signed up to trade reinsurance agreements online, the total volume apparently never reached the critical mass its founders had sought.
It may have been a case of being too far ahead of the game. Inreon’s announcement indicated that it was ceasing operations mainly because it could no longer secure ongoing funding, but it said that it “believes that electronic risk placement will play an important part in the future of the reinsurance industry.”
The bulletin noted that in “the past two and a half years inreon has raised the profile of electronic trading within the reinsurance industry,” attracting considerable interest, but that interest evidently never got to the bottom line.
The announcement said “The platform will remain in operation in the short term to support all current pending placement processes and any client documentation and data needs.”
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