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

Former Vesttoo CEO Yaniv Bertele has claimed no knowledge of the “document falsification” that occurred at the company, seeking to distance himself and co-founder Alon Lifschitz from the fraud, while also claiming that the Board investigation is conflicted given a connection to auditor Kroll.

Porch Group subsidiary Homeowners of America Insurance Company (HOA), a managing general agent (MGA) and insurance carrier hybrid with exposure to the Vesttoo-linked letter of credit (LOC) fraud, has now replaced some 84% or $147 million of reinsurance affected by the issues, but still been placed under temporary regulatory supervision.

In its objection to the prospect that beleaguered insurtech Vesttoo would be allowed to make termination payments to some of its staff, fronting specialist Clear Blue Insurance Insurance Group revealed that it had paid at at least $23 million in commissions to Vesttoo entities that provided collateral for reinsurance deals.

Markel has now joined the Vesttoo bankruptcy proceedings, seeking remedies after two letters of credit (LOC) totalling $127.75 million in value were found to be fraudulent in collateralized reinsurance transactions it had entered into.

Court filings and confirmation from sources have revealed a missing piece of information related to the invalid or fraudulent letter of credit (LOC) issues affecting Vesttoo facilitated collateralized reinsurance deals, with a Hong Kong investor group named Yu Po listed as a target for pre-trial discovery.

After broker Aon’s segregated accounts and transformer company White Rock Insurance (SAC) Ltd. and the joint provisional liquidators of cells of the structure, filed a Chapter 15 to gain greater control of the cells exposed to the Vesttoo fraud issue, the insurtech has now filed to have White Rock and the JPLs held in contempt […]

The Vesttoo issues of invalid, fake or fraudulent letters of credit (LOCs) backing reinsurance deals provides “a depressing reminder of what can go wrong” when compliance fails to identify risks, according to Joe Schmidt, fintech investment partner at venture capital giant Andreessen Horowitz.

A new filing in the Vesttoo bankruptcy case provides a more detailed view of the scale of the alleged fraud, as Aon’s segregated accounts and reinsurance transformer company White Rock Insurance (SAC) Ltd. notes that there were 37 letters of credit (LOCs) that were likely invalid, which represented some $2.35 billion in value.

Porch Group subsidiary Homeowners of America Insurance Company (HOA), a managing general agent (MGA) and insurance carrier hybrid, has now filed to appear as a creditor in the Chapter 11 bankruptcy case of beleaguered insurtech Vesttoo, as HOA looks to protect its rights and any possible recoveries that can be made.

Two of the co-founders of under-fire insurtech Vesttoo have now been fired by the Board, with CEO Yaniv Bertele and Chief Financial Engineer Alon Lifshitz now officially removed from the company, and a new allegation has been reported, that a 2019 transaction facilitated by Vesttoo also had a fake letter of credit (LOC).