Car Insurance Fronting

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Car Insurance Fronting Fronting is a type of car insurance fraud where a more experienced driver claims to be the main driver of a car, when in fact they're not. They are added as a named driver to a policy (usually their parents') when they are actually not the main driver or owner of the car. The practice of fronting in insurance is fraudulent and illegal and carry a criminal convictions. The main aim of the client is to reduce the premium. For example in an tempt to cut the price of expensive car insurance for children, a parent declares his/her self as the main driver since policies are more expensive for younger motorists. This should not be mistaken to fronting business relationship between an Insurance company and a reinsurance company; in this case a fronting policy is a risk management mechanism in which an insurer underwrites a policy to cover a specific risk or a set of risks, then cedes the risk(s) to a reinsurer. Fronting will most likely be discovered when a claim is made. If it is the named driver who is involved in a collision, for example, an insurance provider may launch an investigation. Should the insurer conclude that fronting has occurred, it may refuse to pay for any damage. However, because fronting is a criminal offence, it’s highly possible you will be prosecuted for fraud and end up in court or with a criminal record. You could also risk a hefty fine and points on your licence. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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