Fronting Insurance Market: At an Inflection Point

June 30, 2023


HARTFORD, CT – June 30, 2023 – The U.S. fronting market, where specialized carriers offer their financial strength rating, licensing, and other services primarily to managing general agents (“MGA(s)”) has grown dramatically over the past several years.  From a premium size of about $4 billion in 2018, Conning estimates the market to now exceed $12 billion, according to a new report by Conning.


Fronting companies act as issuing carriers, and in turn cede the majority of the premium and risk to reinsurers.  This growth has been a function of several factors including growth in the underlying MGA market, strong rate trends and greater acceptance of MGAs utilizing the fronting model. Furthermore, the reinsurers who support these carriers have been attracted to the access to large volumes of premiums provided by this distribution channel.


The report finds that the fronting market is at an inflection point.  While near term growth prospects remain favorable, this sector is facing several challenges.  All reinsurers are facing pressure with inflation, a tighter reinsurance market and reduced access to capital.  Conning expects the rapid recent growth will not continue and that consolidation among the over 20 fronting markets will occur. “The fronting market has seen significant activity over the past 18-months, and we expect this is just the beginning of further change to come in this evolving market,” said Steve Webersen, a Managing Director of Insurance Research at Conning


The Conning report, “The Fronting Market: At an Inflection Point,” analyzes the development of the fronting market and key performance metrics for the participants.  It also explores the unique “capital-lite” business model and reviews recent M&A transactions and reasons why these will continue. 


This report is available for purchase from Conning by calling (888) 707-1177 or by visiting here.


* * *

Conning ( is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.

# # #



Media Contacts
Insurance Research Team