A procedure in which a primary insurer acts as the insurer of record by issuing a policy, but then passes the entire risk to a reinsurer in exchange for a commission. Often, the fronting insurer is licensed to do business in a state or country where the risk is located, but the reinsurer is not. The reinsurer in this scenario is often a captive or an independent insurance company that cannot sell insurance directly in a particular country.

"Fronting" In Context

"The new “Obama Bracket Challenge” is designed to help him spur base voters, build his mailing list and boost low-dollar donations, while also fronting his personal charm, which gets higher polls from voters than does his record on the economy."