As many of you will recall (and as advised in many general meetings around the country), SAMBRA has been engaging with SAIA and it members, our business partners, to reach a point where we can agree - especially in the intermediary space - on payment terms and authorization mechanisms that provide SAMBRA members with comfort on payment terms and conditions.
During February, SAMBRA met with SAIA and a number of its Underwriter membership to discuss the current circumstance, which can only be described as severely damaging to SAMBRA members' cash flow, and agreed in principle how the new authorizations should provide such comfort to SAMBRA members, regarding assurance of payments within agreed terms.
The key elements were:
- All authorizations should reflect the payment terms and discounts applicable. These terms were absolute and any deviance, even one day, beyond agreed terms removed the discount benefit and placed the offending intermediary on Pay before release from that point.
- All intermediaries should agree to these terms, within the SLA between Underwriter and their appointed intermediary.
- Authorizations documents should reflect Underwriter details and payment terms as well as a senior manager’ contact details, at the appointing Underwriter, who could be contacted to immediately resolve any payments not made within agreed terms.
On JUNE 1 2019, ANY Insurer, Underwriter or their intermediaries will be placed on pay before release.
SAMBRA will circulate the names of Insurers who will be excluded from that rule before the end of May 2019 and the only Insurers on that list will be those that have agreed terms with SAMBRA, as reflected above.