Are There Similarities Between a Direct-Bill
Operation and TA Service?
TA Service is new to the P&C insurance
brokerage industry. Although outsourcing is common practice
in all industries, including P&C insurance, the outsourcing
of trust account management has never been contemplated and
will therefore come as a surprise to most insurance professionals.
We suggest however a direct-bill operation is nothing but
a form of outsourcing of premium management. Many agencies
decline to maintain trust bank accounts as their management
is too cumbersome, labor intensive and therefore costly. They
organize themselves as direct-bill operations and let the
carriers manage both premium receipts and agency commissions.