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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.


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