Definitions for "Fronting Company"
In a fronting arrangement, the licensed insurer (ceding company) that obtains regulatory approval for an insurance product, sells the product, and cedes all or most of the risk to a company that is not licensed to do business in the jurisdiction.
An insurer that fronts insurance policies for the benefit of another insurer.
A company whose services are used by a reinsurer, the company accepting direct insurance in its own name and forthwith reinsuring it with the reinsurer.