IBAU member brokerage firms (insurance brokers) are subject to stringent legislative requirements concerning the receipt and payment of premiums.

A case in point is the “Cash and Carry” statutory provision in the Insurance Act 2017 that was introduced in January 2019.

Section 63 (1) of the Act stipulates that all insurance policy holders pay in full all the premiums payable under the insurance contract on or before the date of inception of the policy or renewal of the policy. Its operationalization means that insurance brokers had to collect premiums upfront before providing insurance cover for all classes of insurance. Henceforth, this move sought to ensure that insurance brokers immediately pass on client’s premiums to the insurance firms immediately (upon receiving it).