14 September 2023news

Fronting market displays stability

The global fronting market is stable, with levels of premiums rising, a panel at the 2023 Bermuda Captive Conference has heard.

The panel consisted of Jorge Tabares, CFO, Grupo Energia Bogotá, Adrianna Scherzinger, head of captives, Zurich North America, Gemma Grainger, head of customer solutions, Davies Group and Luis Delgado, vice president, Strategic Risk Solutions.

The panel agreed that choosing a fronting partner has so be done in a measured manner, addressing a wide range of issues that include global reach, financial strength, reporting of cash flow and claims and the strength of relationship management.

However, the panel also pointed to additional factors that have to be included, such as brand reputation, claims management expertise, proven services capability and connectivity and online access.

Above all, the panel said, the fronting agreement has to fit in with a broad businesses plan.