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Premium Reconciliation

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What Premium Reconciliation Is + How It Works in SLIP+

What is Premium Reconciliation?

Premium Reconciliation is a verification process that compares surplus lines premium reported by brokers with premium reported by insurers to ensure that all eligible transactions have been filed and that associated taxes, fees, and assessments have been accurately remitted. In the surplus lines market, brokers and insurers report through separate channels. While both parties are reporting the same underlying transactions, differences in timing, structure, and data entry can result in discrepancies. Without a mechanism to compare those data sets, those discrepancies can go undetected. Premium Reconciliation provides that mechanism.

How Premium Reconciliation Works in SLIP+

SLIP+ integrates premium reconciliation directly into the filing and reporting process, allowing discrepancies to be identified systematically and efficiently. At a high level, the process includes:

Read The Facts

Explore The Case for Premium Reconciliation, a multi-part analysis examining:

A Case Study on Premium Reconciliation in Surplus Lines – Part 1

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A Case Study on Premium Reconciliation in Surplus Lines – Part 2

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A Case Study on Premium Reconciliation in Surplus Lines – Part 3

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A Case Study on Premium Reconciliation in Surplus Lines – Part 4

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A Case Study on Premium Reconciliation in Surplus Lines – Part 5

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A Case Study on Premium Reconciliation in Surplus Lines – Parts 1-5

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Dig Into The Facts

What Premium Reconciliation Identifies

Reconciliation programs consistently uncover:

  • Unreported or underreported premium
  • Incorrect or inconsistent policy reporting
  • Home state discrepancies
  • Differences between broker and insurer submissions

These findings are typically the result of operational complexity rather than intentional misreporting.

Why It Matters

Premium Reconciliation supports:

  • Accurate tax collection by ensuring all reportable premium is captured
  • Regulatory visibility into surplus lines market activity
  • Data integrity across reporting systems
  • Market fairness, ensuring all participants operate on a level playing field

Without reconciliation, regulators must rely on submitted filings without independent verification. With it, they gain the ability to confirm that reporting is complete and consistent.