Binder (Delegated Authority) Reconciliation

Binders should be a bonus, except what you save in underwriting you could lose on accounting.

Attractive to brokers and carriers alike, they offer fast start up capabilities, low underwriting costs and processing efficiencies—by enabling brokers to report on business in bulk—binders conceal a wealth of awkward details.

As a component of electronic accounting they are especially notorious because they lump together multiple transactions that have to reconciled at a detailed level to the movement of money.

Bordereaux containing many individual transactions are used to support a single cash settlement, resulting in complex reconciliations that absorb substantial resource and frequently result in significant unallocated cash backlogs.

To allocate the cash, carriers have to reconcile each line item in the bordereaux and its corresponding cash allocation. It’s a time-consuming manual process that often results in further queries.

WCL co-developed a solution to create more visibility in binder accounting

Our award-winning process breaks down the financial bordereau into its component parts and converts each line-item into structured data, removing the need for time consuming manual reconciliations and eliminating unallocated cash.

With complete visibility of the binder, its contents can be automated, finally giving rise to the real saving that binders were always intended to provide.

WCL binder reconciliation enables eAccounting, can be automated and eliminates unallocated cash

In the new process binder transaction data is transformed into ACORD TA messages, so carriers can quickly allocate cash to transactions.

The relationship between the Broker produced binder TA and all the relevant Binder Attachments (as contained in the supporting Bordereaux) is preserved in WCL’s enabledAccounting.

All the attachment TAs can then be integrated into the carrier’s systems, automatically reconciled and an automated response to the Brokers TA sent once reconciliation is complete.

For further information, please contact one of the WCL team today:

+44 (0)20 3908 3200 | info@webconnectivity.uk

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Speak to our team

+44 (0)20 3908 3200 info@webconnectivity.uk

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