Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Vesttoo news

News related to insurtech Vesttoo, which had promised a new tech-focused model for collateralized reinsurance and insurance-linked securities (ILS), but became embroiled in a fraudulent letter of credit (LOC) scandal.

The Vesttoo fraud saw billions of dollars of letter of credit (LOC) collateral found to be invalid, as a sophisticated fraud involving actors across the globe forged LOCs and invented investors, to back Vesttoo facilitated reinsurance deals. The scandal showed up a failure of the reinsurance industry’s KYC processes and resulted in a drawn-out court case and bankruptcy process.