In a fronting arrangement, the licensed insurer (Ceding Company) that obtains regulatory approval for an insurance product, sells the product, and cedes all or most of the risk to a company that is not licensed to do business in the jurisdiction.
In a fronting arrangement, the licensed insurer (Ceding Company) that obtains regulatory approval for an insurance product, sells the product, and cedes all or most of the risk to a company that is not licensed to do business in the jurisdiction.