Swiss Re Insurance-Linked Fund Management

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Fronting news

Fronting is most typically understood as when a ceding company (insurer) underwrites a policy and transfers the entire risk, or majority of it, to a reinsurance company.

Fronting has become a common practice in the insurance-linked securities (ILS) market, where investors and ILS funds work with fronting insurers in order to access risk more efficiently, benefit from the rating a fronting provider has, while also often utilising the fronting providers ability to hold onto the tail risk associated with the transaction.