Brokers and counterparties reassess collateral on fronting deals as Vesttoo tentacles spread

Amid the many questions that remain unanswered in the Vesttoo fallout, one clear early conclusion is that there will be far greater scrutiny from regulators, rating agencies and counterparties around collateral quality and security on reinsurance transactions in the MGA and programs space, which could also alter dynamics in the fast-growing fronting sector.