Vesttoo

Vesttoo is an Israeli fintech company that operated in the reinsurance and insurance-linked securities space, positioning its platform as a technology-driven bridge between insurance companies seeking to transfer risk and capital-market investors. The company became widely known primarily due to a major fraud scandal that broke in 2023, in which letters of credit presented as collateral in deals it facilitated were found to be fraudulent. This triggered a collapse in counterparty confidence, Chapter 11 bankruptcy filings in the United States, and litigation from multiple insurance carriers.

Vesttoo's business model connected insurers looking to offload underwriting risk with institutional investors and capital markets, framing its platform as an efficient, technology-enabled route to collateralized reinsurance transactions. Following the discovery of the fraudulent collateral in 2023, several U.S. and international insurance companies disclosed exposure to deals tied to the forged letters of credit.

The 2023 scandal severely damaged the company's standing. Aon, one of the world's largest insurance brokers, also faced scrutiny over its role in transactions that Vesttoo had intermediated. Vesttoo filed for Chapter 11 bankruptcy protection in the United States in 2023. Detailed public information on the company's current operational status is limited.