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Accounts payable is where premium accounting meets reality. Insurance payables are not simple vendor bills. They involve carriers, producers, commissions, fees, taxes, and frequent netting between receivables and payables. When AP is handled outside insurance-aware logic, spreadsheets and manual journals take over. Premium Accounting provides insurance-specific accounts payable and netting built for MGAs and wholesalers.
Traditional AP assumes:
Insurance premium payables break those assumptions.
Accounting teams must manage:
Without an insurance-specific AP layer, balances are hard to explain and reconcile.
Premium Accounting treats accounts payable as part of the premium subledger.
The AP workflow includes:
This ensures payables remain aligned with premium activity rather than manual estimates.
Netting is a core requirement in insurance accounting.
Premium Accounting supports netting scenarios such as:
Netting rules are applied consistently, eliminating spreadsheet-based calculations.
Insurance payables change as premium changes.
Premium Accounting supports:
Payable balances remain traceable to the underlying policy and transaction history, reducing disputes with carriers and producers.
Premium Accounting provides accounting teams with:
This allows teams to manage settlements proactively instead of reacting at close.
Accounts payable and netting in Premium Accounting are not isolated.
Payable outcomes flow into:
This keeps AP aligned with financial reporting and month-end close. To see how payables fit into broader workflows, review how Premium Accounting integrates with insurance management systems and accounting ledgers.
Premium AP and netting is ideal for organizations that:
It is most commonly used by MGAs and wholesalers evaluating insurance premium accounting software to modernize settlement workflows.
Accurate allocations, full traceability, and audit-ready reporting - without agency accounting workarounds.