New frontiers. The future of fronting
Fronting companies have proven among the fastest growing insurance businesses of the 21st century, fueled by large private equity investments and billions of dollars of underwriting capital committed by reinsurance companies and ILS investors.
Fronting has historically played a key role in supporting captive insurers. But the rise of dedicated fronts, transacting exclusively fronting business, has been driven by the MGA revolution that is reshaping property casualty insurance markets.
The role of fronting in the MGA market is the focus of this report. MGAs in the United States now depend heavily on 23 groups transacting business through 41 fronting companies. These groups increasingly determine which MGAs can get started and how fast they can scale.
The latest performance figures from US fronts indicate that the market is becoming increasingly saturated, and a number of companies have been turning their attention to other markets – particularly the UK - where demand for their services is high and competition less intense.
Fronting companies have proven among the fastest growing insurance businesses of the 21st century, fueled by large private equity investments and billions of dollars of underwriting capital committed by reinsurance companies and ILS investors.
Fronting has historically played a key role in supporting captive insurers. But the rise of dedicated fronts, transacting exclusively fronting business, has been driven by the MGA revolution that is reshaping property casualty insurance markets.
The role of fronting in the MGA market is the focus of this report. MGAs in the United States now depend heavily on 23 groups transacting business through 41 fronting companies. These groups increasingly determine which MGAs can get started and how fast they can scale.
The latest performance figures from US fronts indicate that the market is becoming increasingly saturated, and a number of companies have been turning their attention to other markets – particularly the UK - where demand for their services is high and competition less intense.
Fronting companies have proven among the fastest growing insurance businesses of the 21st century, fueled by large private equity investments and billions of dollars of underwriting capital committed by reinsurance companies and ILS investors.
Fronting has historically played a key role in supporting captive insurers. But the rise of dedicated fronts, transacting exclusively fronting business, has been driven by the MGA revolution that is reshaping property casualty insurance markets.
The role of fronting in the MGA market is the focus of this report. MGAs in the United States now depend heavily on 23 groups transacting business through 41 fronting companies. These groups increasingly determine which MGAs can get started and how fast they can scale.
The latest performance figures from US fronts indicate that the market is becoming increasingly saturated, and a number of companies have been turning their attention to other markets – particularly the UK - where demand for their services is high and competition less intense.