Insurtech, Insurance Technology in reinsurance and insurance-linked securities (ILS)

International specialty insurance and reinsurance group Chaucer has responded robustly to objections made by other creditors after its recent entry to the Vesttoo bankruptcy case, saying that the proposed bankruptcy plan has numerous issues and is “uncomfirmable.”

Aon established a $197 million reserve for legal settlement expenses related to the letter of credit (LOC) fraud at insurtech Vesttoo as an attempt to strategically draw a line under the issue, Eric Andersen, President of Aon plc said today, also highlighting that meaningful recoveries are expected to be made to reduce the overall cost […]

Broking giant Aon has recognised a significant legal settlement expense reserve amounting to $197 million related to the Vesttoo fraud scandal in its fourth-quarter of 2023 results.

Having reported one quarter ago that it recognised a $25 million credit loss against a fraudulent $50 million letter of credit (LOC) for reinsurance provided by insurtech Vesttoo, Markel Group has now increased the credit loss related to Vesttoo collateral to $65 million.

Aon has filed a motion calling for the New York state lawsuit that fronting specialist Clear Blue Insurance filed against it, in relation to the reinsurance letter of credit (LOC) fraud perpetrated by insurtech Vesttoo, to be dismissed in its entirety.

Demonstrating its appetite to deliver parametric insurance and data-driven risk transfer solutions beyond natural catastrophe, weather and climate risks, specialist Descartes Underwriting has launched its first parametric cyber offering.

While disagreements over a consolidated approach to liquidating the Vesttoo bankruptcy estate, versus a more segregated approach that makes assets available to the cedents involved in certain reinsurance deals, continues, the Official Committee of Unsecured Creditors have now accused Chaucer of “lying in wait” before launching efforts to secure value for itself.

Insurtech Vesttoo, the company at the heart of a scandal over fraudulent reinsurance letters of credit (LOC), has called for its ongoing US Chapter 11 bankruptcy case to be dismissed and for insolvency proceedings to be commenced in Israel in its place.

Jireh Connect, a technology platform that targets helping brokers place risk more efficiently with reinsurance and risk capital providers and manage the process more effectively, has announced the completion of its first placement, an industry loss warranty (ILW).

As the Vesttoo bankruptcy case continues in the Delaware court, it’s apparent that a difference of opinion that emerged near the beginning of the saga, over ownership of segregated cells and their contents, remains the key issue of disagreement between a range of creditors and parties involved.