The cost to outsource premium management is charged as a fee per policy. The fee covers the policy premium management from the time the premium is transacted and until is disbursed, and including endorsements, returns premiums, credit and refunds. Financial reports and providing solvency documentary evidence to agency owners, carriers, auditors, and regulators are included.
To better understand what the outsourcing fee covers refer to the Outsourced Functions page.
In agencies with large premium volume the cost of outsourcing may be charged as a fee per $1.0 million premium.
The cost of outsourcing is comparable to the billing fee charged by insurance carriers for direct billing service. Producer agencies may obtain additional information regarding the cost of outsourcing by sending us a request form.