Hello, I found the definition of Reinsurance exit strategy and fronting are very similar. I wonder if they consider the same or the difference being the ceding company is an insurer in fronting; whereas the ceding company in reinsurance exit strategy is an reinsurance company? Thanks!
They are both generic terms. An exit strategy is just a method of getting out of a line of business - for example, by using commutations, run-offs, novation etc. Fronting is essentially where somebody else sells your business.
