https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AClient_moneyDefinition:Client money - Revision history2026-06-13T17:19:08ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Client_money&diff=10573&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-11T16:45:56Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>💵 '''Client money''' refers to funds held by an [[Definition:Insurance intermediary | insurance intermediary]]—typically a [[Definition:Insurance broker | broker]] or [[Definition:Managing general agent (MGA) | MGA]]—that belong to clients or [[Definition:Insurance carrier | insurers]] rather than to the intermediary itself. These funds most commonly consist of [[Definition:Premium | premiums]] collected from [[Definition:Policyholder | policyholders]] before they are remitted to the carrier and [[Definition:Claims | claims]] payments received from carriers before they are forwarded to the insured. Because the intermediary temporarily custodies money that is not its own, strict regulatory and fiduciary obligations govern how these funds are handled.<br />
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🔒 Regulatory frameworks in major markets—such as the [[Definition:Financial Conduct Authority (FCA) | FCA's]] Client Assets Sourcebook (CASS) in the United Kingdom and individual state [[Definition:Department of insurance | insurance department]] rules in the United States—require intermediaries to segregate client money in designated [[Definition:Trust account | trust]] or [[Definition:Fiduciary account | fiduciary accounts]] that are ring-fenced from the firm's own operating funds. The intermediary must reconcile these accounts on a prescribed schedule, report any shortfalls immediately, and maintain detailed records showing each client's entitlement. In the [[Definition:Lloyd's of London | Lloyd's]] market, brokers operating under [[Definition:Lloyd's broker | Lloyd's broker]] status face additional client-money requirements designed to protect the interests of both [[Definition:Lloyd's syndicate | syndicates]] and policyholders.<br />
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🛡️ Proper client-money management is not merely a compliance exercise—it is essential to market trust. When an intermediary commingles client funds with its own or delays remittances, policyholders may find their coverage jeopardized, and carriers face [[Definition:Credit risk | credit risk]] they did not intend to assume. High-profile intermediary insolvencies have historically resulted in significant client-money shortfalls, prompting regulators to tighten rules and increase audit scrutiny. For [[Definition:Insurtech | insurtech]] brokers and digital [[Definition:Managing general agent (MGA) | MGAs]] scaling rapidly, implementing robust client-money controls and automated reconciliation from the outset is a regulatory prerequisite and a competitive differentiator when seeking capacity partnerships with established carriers.<br />
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'''Related concepts:'''<br />
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* [[Definition:Insurance intermediary]]<br />
* [[Definition:Fiduciary account]]<br />
* [[Definition:Financial Conduct Authority (FCA)]]<br />
* [[Definition:Premium trust fund]]<br />
* [[Definition:Insurance broker]]<br />
* [[Definition:Regulatory compliance]]<br />
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