The insurance premium management (IPM) service was developed for P&C insurance agencies writing commercial line insurance and having an in-house agency-bill operation. Insurance agencies with direct-bill operations may consider switching to an agency-bill operation that can be outsourced.

All commercial insurance agencies, whether large, medium or small, will benefit from IPM outsourcing.

Large Agencies

Large commercial agencies over (over $10 million commercial annual premium) are to gain more. The larger the agency, the higher the labor cost savings and interest earnings on additional premium float.

Medium Agencies

Medium size agencies (5 to $10 million commercial annual premium) will gain the most from the outsourcing of premium management. The labor-intensive character of trust account operation tends to disproportionally burden these agencies. While their income is too small to afford additional employees, their premium volume is too big to be handled by a small staff. Statistically, the medium size agencies have lower profit margins than small or large agencies.

The outsourcing of premium management will create an opportunity for the medium-size agencies to grow beyond the operations critical mass with little or no capital investment.

Small Agencies

Small agencies (1 to $5 millions commercial annual premium) may continue to manage their trust account with help from their current agency management system. They could significantly benefit from outsourcing it if they planned to grow. By using outsourcing small agencies will be able to expand their book of business and increase productivity without capital investment.


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