Analysis

Briefing: Vesttoo fallout could spur ‘weakening in market confidence’ over LOCs

By 2023-08-02T13:11:00

Letter of credit

Letters of credit are used increasingly in the insurance market as collateral, but could the latest incident lead to more rigour being applied to ensure validity?

In Spielberg’s 2002 film Catch Me If You Can, con artist Frank Abagnale – played by Leonardo DiCaprio – is pursued by FBI agent Carl Hanratty –over scams that swindle people out of millions.

While the recent case of Israeli insurtech Vesttoo facilitating allegedly fraudulent letters of credit (LOC) for reinsurance transaction has less box office potential, the incident has attracted the attention of the FBI and shaken confidence in the insurtech sector.

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Explore more fraud-related content here or discover other news analysis stories here 

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