Fronting

{
  "id": "MLC-T-INS-001601",
  "term": "Fronting",
  "field": "Insurance and risk management",
  "definition": "An arrangement where a licensed insurer issues a policy for a risk, but then cedes all or a substantial portion of the premium and liability to a non-admitted or captive insurer through a reinsurance agreement. This allows the non-admitted insurer to access markets where it is not licensed. The fronting insurer retains a small fee for its services and the use of its license.",
  "url": "https://mlchart.com/terminology/insurance/fronting/"
}