Sometimes insurance companies wish to offer insurance in jurisdictions where they are not licensed: for example, an insurer may wish to offer an insurance programme to a multi-national company, to cover property and liability risks in many countries around the world. In such situations, the insurance company may find a local insurance company which is authorised in the relevant country, arrange for the local insurer to issue an insurance policy covering the risks in that country, and enter into a reinsurance contract with the local insurer to transfer the risks. In the event of a loss, the policyholder would claim against the local insurer under the local insurance policy, the local insurer would pay the claim and would claim reimbursement under the reinsurance contract. Such an arrangement is called "fronting". Fronting is also sometimes used where an insurance buyer requires its insurers to have a certain financial strength rating and the prospective insurer does not satisfy that requirement: the prospective insurer may be able to persuade another insurer, with the requisite credit rating, to provide the coverage to the insurance buyer, and to take out reinsurance in respect of the risk. An insurer which acts as a "fronting insurer" receives a fronting fee for this service to cover administration and the potential default of the reinsurer. The fronting insurer is taking a risk in such transactions, because it has an obligation to pay its insurance claims even if the reinsurer becomes insolvent and fails to reimburse the claims.
Read more about this topic: Reinsurance
Other articles related to "fronting":
... of the following heights 3–6 storeys fronting the canal with an additional seventh storey at the corner facing the proposed access road (south-western corner of the site) 2–7 storeys facing the railway viaduct 6 ...
... Th-fronting has been spreading in Southern England at a slower rate than t-glottalization ... Th-fronting in the speech of working-class adolescents in Glasgow was reported in 1998, provoking public as well as academic interest ... The finding of th-fronting in Glaswegian creates a difficulty for models of language change which hinge on dialect contact associated with geographical ...
... However, evidence contradicts this expectation fronting of /ʊ/ less advanced in London than in periphery lack of fronting of /ʊ/ in inner city is conservative ... lack of /oʊ/-fronting fronting of the offset of /oʊ/ absent in most inner-London speakers of both sexes and all ethnicities, present in outer-city girls ... However, the added fronting is greater in London than in the south-east periphery, resulting in variants such as ...
... Although th-fronting is found occasionally in the middle and upper (middle) class English accents as well, there is still a marked social difference between working and middle class speakers ... Th-fronting is regarded as a 'boundary marker' between Cockney and Estuary English, as depicted in the first descriptions of the latter form of English and confirmed by a ... Nevertheless, Altendorf points out that th-fronting is found occasionally in middle class (Estuary) speech as well and concludes that "it is currently making its way into the ...
Famous quotes containing the word fronting:
“I cease my song for thee,
From my gaze on thee in the west, fronting the west, communing with thee,
O comrade lustrous with silver face in the night.
Yet each to keep and all, retrievements out of the night,
The song, the wondrous chant of the grey-brown bird,
And the tallying chant, the echo aroused in my soul,
With the lustrous and drooping star with the countenance full of woe,”
—Walt Whitman (18191892)
fragile as agate,
lies fronting all the wind.”
—Hilda Doolittle (18861961)