External auditors are probing collateral “inconsistencies” at the AI-based broking platform for collateralised reinsurance and ILS deals.

motor price-fixing probe

Billion dollar fraud allegations have emerged at Vesttoo, an insurance linked securities (ILS) insurtech unicorn.

Vesttoo has reportedly tasked external auditors with investigating a potential fraud involving “billions of dollars in collateral”, after finding “inconsistencies” in its transaction modelling.

Israeli publication CTech unearthed claims of fraudulent collateral at the re/insurtech intermediary, an AI-based technology platform acting as a broker for collateralised reinsurance and ILS deals.

The allegations have reportedly led Vesttoo’s chief commercial officer Julia Henderson to quit the firm.

An initial investigation was underway, the Israeli fintech publication said, after finding that “the collateral claimed by the company was found to be virtually non-existent.”

Tel Aviv-based Vesttoo issued a statement to ILS publication Artemis, saying:

“The Vesttoo team discovered inconsistencies between an investor and a cedent in transactions that Vesttoo modelled the risk for.

“We take the integrity of our business very seriously and are conducting a comprehensive third-party audit to ensure our due diligence processes continue to be robust.”