AM Best will review collateral arrangements at rated fronting insurance companies following fraud claims at Vesttoo, an insurtech that connects capital markets participants with reinsurance risks.
“Although the details and scope of this issue remain unclear, AM Best is monitoring the rapidly evolving situation and reviewing fronting carriers and other insurers that have material amounts of reinsurance counterparty credit risk and reliance on various forms of collateral,” AM Best said in a press release. “Based on this review, rating actions will be taken as warranted.”
