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Fronting is a type of reinsurance in which a reinsurer contracts with an insurer to assume the risk of a policyholder. The reinsurer then contracts with a fronting company, which is an insurer that provides the policyholder with the coverage they need. The fronting company is responsible for collecting premiums, paying claims, and managing the policyholder's risk. The reinsurer, in turn, provides the fronting company with the reinsurance coverage they need to protect themselves from any losses.
Fronting is a popular form of reinsurance, as it allows insurers to access the reinsurance market without having to establish their own reinsurance operations. It also allows insurers to access the reinsurance market without having to pay the full cost of reinsurance.
Some of the companies in the fronting market include Aon, Allianz, AXA, Munich Re, Swiss Re, and Zurich. Show Less Read more
