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

Lloyd’s has issued revised guidance for members and members agents on Tier 2 capital limits, which encompasses the use of letters of credit (LOC) in the marketplace and in it has stressed how important it is that LOC’s have their validity confirmed on a regular basis.

The committee of unsecured creditors in the Chapter 11 bankruptcy case of insurtech Vesttoo has now been approved to begin conducting legal discovery on the company after the judge issued an order approving discovery at a hearing yesterday.

A Bermuda Supreme Court hearing held on Friday, to look into the issue of segregated cells that housed reinsurance deals affected by the Vesttoo letter of credit (LOC) fraud and fake collateral issues, resulted in an adjournment of the case until December 1st, the Royal Gazette has reported.

It’s increasingly clear that the ongoing difference of opinion over ownership or control of property rights to segregated cells and accounts linked to them, that were used for reinsurance deals facilitated by Vesttoo where letters of credit (LOC) were found to be fraudulent or forged, will need a definitive court ruling to be decided.

In a response to objections made to the bankruptcy court by Vesttoo and the unsecured creditor committee, the joint provisional liquidators (JPL’s) to the affected cells of the Aon White Rock SAC vehicle have said arguments made objecting to their application for Chapter 15 relief are “meritless”.

Porch Group, a software driven financial services group with a homeowners insurance arm, continues to proactively strengthen its business to recover from exposure to the Vesttoo-linked letter of credit (LOC) collateral fraud that affected certain reinsurance deals its Homeowners of America Insurance Company (HOA) subsidiary had entered into.

Descartes Underwriting, the parametric insurance and data-driven risk transfer specialist managing general agency (MGA), has named former Chief of Staff Marlène Luce to take on the new role of Head of Strategy & New Business, as leader of a newly formed department.

The judge in Vesttoo’s Chapter 11 bankruptcy case has called for all sides to “stop litigating and start cooperating” to find a common ground on key issues that have been holding back progress at a hearing yesterday.

The latest filings in the Vesttoo bankruptcy case show that the battle over control of and access to segregated cells used for Vesttoo linked reinsurance contracts continues, while the counsel for the unsecured creditor committee has raised a concern that cash may have been withdrawn from some of them.

The Vesttoo bankruptcy case continues and the date for a hearing in the Bermuda Supreme Court over the liquidation of cells linked to Aon intellectual property reinsurance transactions also nears, and now the joint provisional liquidators and Aon’s White Rock Insurance (SAC) Ltd. are seeking clarity over whether they can attend the hearing, without violating […]