IBA-INSURANCE-BROKER-ACCT

Insurance broker accounting.

Definition

Brokers collect premium from client, retain their commission, transmit net to carrier. Statutory Trust Account (UK FCA CASS 5), Premium Trust Accounts (US states). Software: SaaS Brokerage Builder (Vertafore), Power Broker (AIM), Applied Epic, Salesforce Insurance Cloud. Monthly Bordereaux reconciliation with carriers.

Origin

IBA practices modernised by UK FCA CASS 5 (2007) and ABI Code of Conduct.

Example in context

Marsh Insurance Brokers UK manages £8 billion of client premium funds in Trust Account ; monthly reconciliation, annual CASS 5 audit by Big Four.

Related terms

• ACORD PCS — data exchange.