---
title: Finance Operations Overview
slug: finance-operations
icon: {"lucideIcon":"LayoutDashboard"}
docTags: 
createdAt: 2026-08-17T11:16:09.603Z
---

## 🎯 Purpose

Finance Operations governs the insurance-money back-office environment, including premium collection and allocation, broker statement production, commission payment processing, and reconciliation activities supporting financial and regulatory control obligations.

## 📊 Operational cycle overview

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Execute daily premium collection and allocation processes across all active premium channels.
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Perform monthly premium reconciliation controls and close outstanding exception items by working day 6.
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Issue broker statements following reconciliation validation and operational approval.
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Run commission payment processing only after confirmation that collected premium and statements agree to reconciled balances.
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## 🛡 Governance and control requirements

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**🛡 Client-money governance standard**

Client money and company money must remain segregated in accordance with the Insurance Money Handling Policy. Reconciliation exceptions may not be deferred without documented operational ownership and remediation tracking.
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## 🧾 Key operational controls

- Unallocated premium older than 60 days is escalated through operational governance channels and may not be carried indefinitely.
- Commission payments are processed only on collected premium, never on written premium.
- Reconciliation evidence, payment approvals, and statement records must remain audit-ready and centrally retained.

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## 🔎 Quality and control guidance

- Maintain clear segregation between preparer and reviewer roles for all reconciliation and payment activities.
- Reconciliation exceptions should carry accountable owners, target dates, and evidence of remediation actions.
- Ensure operational metrics are retained for governance committee reporting and audit inspection.
- Validate that downstream broker commission calculations are based exclusively on collected and reconciled premium.
- Retain statement issuance records, reconciliation packs, and payment approvals in accordance with records-retention requirements.
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