Fronting companies in the property-casualty industry serve as intermediaries, enabling insurance companies to access otherwise inaccessible markets. They serve as a platform for insurance programs, managing policy issuance and claims administration. They often find market distribution sources in the Program Business Storefront Directory.
Tag: fronting company
The Future of Fronting Companies
Fronting companies are facing challenges and greater scrutiny amid the recent Vesttoo scandal and Trisura matter with rating agencies and other stakeholders taking a closer look at the use of LOCs for reinsurance collateral. Following is an overview of the fronting market and what happened over the last several months to put this insurance model in the news.