Carrier appetite varies as more captives seek 100% fronting

• Mixed appetite amongst carriers for offering 100% fronting
• Demand for unbundled fronting increasing though not exponentially
• Strategy often deployed when no market appetite for the risk

There is an increasing number of captives requesting unbundled fronting services where the fronting carrier takes no risk with the client reinsuring 100% to the captive.

Unbundled fronting is unlike the more traditional fronting arrangements where the risk is shared between a captive and the fronting insurer, with the fronter frequently being the lead carrier for the captive’s policies.