IBA
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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.