Insurance brokers in Lebanon collect premiums in US dollars and in Lebanese pounds, often for the same policy, and settle with insurers in both. Accounting software built for a single currency, and spreadsheets with one "rate" cell at the top, both fail at this. This guide explains the problem and the one rule that solves it, and shows how CeevTech Brokers applies it.
The one rule: freeze the rate per transaction
Every receipt, every insurer settlement and every commission entry must store three things: the amount, the currency it was paid in, and the exchange rate on that day. The rate is frozen on the transaction and never recalculated.
Without this rule, a brokerage that keeps a single "current rate" in its spreadsheet rewrites its own history every time the rate changes. A receipt of LBP collected months ago suddenly looks smaller or larger in USD, the client statement no longer matches what the client actually paid, and the insurer settlement no longer matches what was handed over.
CeevTech Brokers records each transaction in USD or LBP and freezes the exchange rate on it.
Receipts from clients
When a client pays, record the amount in the currency received. If a USD premium is paid in LBP, the receipt stores the LBP amount and the rate used, so both the LBP figure and its USD value on that day are kept. The open balance on the policy is then correct in both currencies, and the client statement shows exactly what was paid, when, and in what.
In CeevTech Brokers, collections are recorded per policy with receipts, open balances and client statements.
Insurer settlements
Settling with an insurer means handing over what was collected on its behalf, net of commission. If the brokerage collected part in LBP, the settlement must use the rate that applied when the money was collected, not the rate on settlement day, or one side loses the difference. A per-transaction frozen rate makes the settlement figure a sum of known values rather than a guess.
CeevTech Brokers keeps an account per insurance company with settlements and commissions.
Commissions
Commission is a percentage of the premium. If the premium was collected in two currencies at two rates, the commission has to be computed on the frozen values. Reports should then show commission per insurer and per line of business, in a way that can be checked against the insurer's statement.
Reporting in two currencies
Owners want one view: written premium, receivables and commission, by line and by insurer. With frozen rates, the system can present each figure in its original currency and in a converted total without distorting the past. CeevTech Brokers reports written premium by line of business and by insurance company, receivables and commission.
Practical checklist
- Every transaction stores amount, currency and rate.
- The rate is never recalculated after saving.
- Client statements show the currency of each payment.
- Insurer settlements are built from frozen values.
- Commission reports can be compared with the insurer's statement.
- Roles limit who can change amounts and rates.
Frequently asked questions
Why not just convert everything to USD at today's rate?
Because the past did not happen at today's rate. Converting old LBP receipts at a new rate changes what clients appear to have paid and what insurers appear to be owed. Freeze the rate on each transaction instead.
Can a client pay one policy partly in USD and partly in LBP?
Yes. Each receipt is recorded in its own currency with its own rate, and the policy's open balance stays correct.
Does CeevTech Brokers handle USD and LBP?
Yes. Receipts, insurer settlements and commissions are recorded in USD or LBP, and the exchange rate is frozen on every transaction.
Who can change an exchange rate in the system?
In CeevTech Brokers, roles (owner, manager, data entry, viewer) control what each team member can do.
See how it works with your own portfolio: CeevTech Brokers or ask for a quote.