How hybrid fronting can offer MGAs a mark of distinction

With reinsurers exercising greater restraint around the business they will accept and which managing general agents (MGAs) they will work with, a hybrid fronting model that has more skin in the game than most, in the form of higher retentions, has significant appeal.

That is the view of Dominick Tassone, chief underwriting officer, AM Specialty Insurance Company, speaking ahead of a special Intelligent Insurer webinar on April 5, titled “ How hybrid fronting solutions can help MGAs navigate a challenging landscape”. It brings together a panel of experts to debate how MGAs can stand out from the crowd with a hybrid model as more fronting companies have entered the insurance space over the past three years.

In addition to Tassone, the session will feature Shevawn Barder, chief executive officer of AM Specialty Insurance Company; Matt Petka, managing director, Guy Carpenter; and Jeremy Deitch, general counsel and head of compliance, Boost Insurance.

“AM Specialty Insurance Company has been very clear that our level of risk retention, overall, will be much higher on average than that of most fronting carriers,” Tassone said.

He added: “When you’re looking at 10 to 25 percent of risk retention on an individual programme, that’s significant.”

This is a more traditional approach to the business than that of a typical fronting carrier, he explained, saying that some won’t take any risk at all.