Bordereaux Reporting Starts With Good Insurance Accounting

Bordereaux reporting problems are rarely reporting problems. They are accounting problems that surface at the point of carrier submission.

For MGAs and wholesalers operating under delegated authority, bordereaux accuracy depends on how premium, commissions, and adjustments are recorded throughout the policy lifecycle. When accounting is weak, bordereaux becomes manual, delayed, and disputed.

This article explains why bordereaux reporting starts with good insurance accounting, where teams struggle, and how to fix the problem at its source.

What Bordereaux Reporting Really Represents

Bordereaux is a financial and operational summary of delegated authority business.

It typically includes:

• Written and earned premium
• Commissions and fees
• Endorsements and cancellations
• Return premium
• Policy counts and movements
• Program and period totals

None of this data originates in a reporting template. It originates in accounting.

Why Bordereaux Breaks Down in Practice

Accounting and Policy Data Drift Apart

Policy systems track coverage. Accounting systems track money. When the two are not aligned, reporting teams reconcile differences manually. Bordereaux becomes a reconstruction exercise rather than an export.

Endorsements and Cancellations Are Not Reflected Correctly

Policy changes create retroactive financial impact. If accounting systems do not automatically adjust prior balances, bordereaux totals must be corrected manually each reporting cycle.

Premium and Commission Are Not Allocated by Period

Carriers expect bordereaux by reporting period. If accounting cannot allocate premium and commission accurately across periods, reports do not tie out. This leads to disputes and delays.

Why Spreadsheets Dominate Bordereaux Preparation

Spreadsheets appear when systems cannot:

• Allocate premium by program and period
• Track earned and unearned balances accurately
• Reconcile commission adjustments
• Maintain a clean audit trail

Teams export data from multiple systems and rebuild bordereaux manually.

Related reading: Stop Using Spreadsheets

How Good Accounting Enables Reliable Bordereaux

Accurate bordereaux depends on a few foundational accounting capabilities.

Policy Driven Financials

Every policy action must generate accounting impact. Binds, endorsements, cancellations, and renewals should drive premium and commission automatically. Bordereaux reflects these outcomes rather than correcting them.

Program and Period Level Allocation

Premium and commission must be allocated by:

• Program
• Carrier
• Line of business
• Reporting period

This requires insurance specific accounting logic.

Learn how this is handled: Insurance Premium Accounting Software

Automated Journal Entries and Audit Trail

Journal entries should be automated and traceable back to policy events. This creates confidence for both internal audits and carrier reviews.

The Relationship Between Accounting and Carrier Trust

Delegated authority relies on trust.

Carriers expect MGAs and wholesalers to:

• Report accurately
• Remit funds on time
• Maintain transparent records

When bordereaux is consistently late or corrected, trust erodes. Good accounting preserves that trust.

Why Generic Accounting Systems Fall Short

Generic accounting systems were not built for delegated authority.

They lack:

• Policy level accounting
• Period based allocation
• Commission specific workflows
• Bordereaux reporting structures

As a result, reporting lives outside the system.

Explore how this works: Premium Accounting Overview

How Modern Premium Accounting Fixes Bordereaux

Modern premium accounting systems are designed to support delegated authority.

They:

• Track premium and commission by policy
• Allocate amounts accurately by period
• Adjust automatically for policy changes
• Generate carrier ready bordereaux
• Synchronize results to the general ledger

This turns bordereaux into a system output rather than a manual task.

Explore this approach: Bordereaux Accounting

How Bordereaux Connects to the Broader Accounting Lifecycle

Bordereaux accuracy depends on upstream accounting quality.

It connects directly to:

• Agency bill and direct bill accounting
• Commission reconciliation
• Installments and premium finance
• Trust accounting and settlements

When these areas are handled correctly, bordereaux becomes predictable.

Related reading: Agency Bill vs Direct Bill Accounting Explained for P&C Insurance

Key Takeaways

• Bordereaux problems originate in accounting, not reporting
• Policy driven accounting is required for delegated authority
• Period allocation is essential
• Spreadsheets indicate missing system logic
• Accurate accounting preserves carrier trust
• Modern premium accounting makes bordereaux repeatable

What to Read Next

• P&C Insurance Accounting for MGAs and Wholesalers
• Why MGA and Wholesale Insurance Accounting Breaks at Scale
• Direct Bill Commission Reconciliation in P&C Insurance
• Introducing Selectsys Premium Accounting for MGAs and Wholesalers

FAQs

What is bordereaux reporting in insurance?
Bordereaux reporting summarizes premium, commissions, and policy activity for delegated authority programs.

Why does bordereaux reporting fail?
It fails when accounting does not track premium and commission accurately by policy and reporting period.

Can bordereaux reporting be automated?
Yes, when accounting systems are designed to generate carrier-ready reports automatically.

How does accounting impact carrier trust?
Accurate and timely bordereaux reporting builds confidence with carriers and reduces disputes.