What Does Front Company Mean?

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What does Front Company mean? Read on to discover the definition & meaning of the term Front Company - to help you better understand the language used in insurance policies.

Front Company

Front Company

An insurer that issues a policy and cedes all or a substantial part of the risk to another insurer. Certain types of statutory coverages requiring evidence of insurance from admitted insurers are fronted and reinsured by captives. A "pure front" is one that delegates underwriting and claims handling authority to the reinsurer or a managing general agent (MGA). Most insurers that front for captives are not pure fronts.

We hope the you have a better understanding of the meaning of Front Company.

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