6 Steps to Commissions Processing

By Kelsey Rosauer on September 11, 2015 in Commissions Processing

AgencyBloc Steps to Processing Commissions

We want to streamline commissions processing for you.

Since we entered the CRM/Agency Management System industry, we heard time and time again of a problem agencies struggled with: commissions processing. It was eating up their time, and the process was unorganized and frustrating. 

Agency owners and agents have a lot on their plate and manually processing commissions takes serious time and resources. So, we decided that we should create a comprehensive solution.

6 Steps to Commissions Processing

Our commissions processing works mostly behind the scenes once you get it set up, with little work from you. But, we want you to understand the setup process and see how this information you’re setting up will help AgencyBloc process your commissions. The first 3 steps require some work from you:

AgencyBloc Setup Commissions

Step 1: Setup Policies

The first step is to setup your clients and their policies. This can be done either via our import process or manually. AgencyBloc fully supports both individual and group business.

*Note: This is the minimum amount of information necessary to process commissions. Typically, agencies will track additional information for customer service and cross-sell opportunities.

Step 2: Setup Rate Tables

We encourage agencies to utilize rate tables that can then be referenced by multiple policies. Rate tables can be configured with multiple rates - using percent of premium, percent of commission received, per life, or as a flat amount. They can also specify payouts based on carrier, coverage type, or even plan code. If compensation adjustments need to be made, rate schedules offer a convenient way to quickly adjust payouts for hundreds of policies.

*Note: Rate tables can be simple or complex depending on your needs. Our service team can provide you with assistance to establish the right structure for your needs.

Step 3: Tie Payees to Policies

Policies can have an unlimited number of agents assigned for commissions. Typical scenarios include paying a referral fee, trainer fee, manager override, or agency override. Each of these agents can be paid differently. Typically, a rate schedule will be utilized for each payee; however, if a unique payout is required, a manual amount can be specified.

We've also created payee schedules that allow you to add more than one payee to a policy. You're able to add these people to a hierarchy, each with their individual respective commissions, and then add them to a group. Then, you're able to add them to a policy as a whole group to policies.

The last three steps are the magic of AgencyBloc. We have over 700 carrier statements mapped, so we know what they are paying your agency when you go out to the carrier website and grab that statement. All you have to do is import the statement and let it do the work for you:

AgencyBloc Process Commissions

Step 4: Import Carrier File 

Our commissions module was built to save time and improve accuracy. With these two goals in mind, the most appreciated aspect of our system hinges on Carrier Imports. If your agency is receiving electronic commission statements, we can build import maps for directly importing that information into AgencyBloc. When these files are uploaded, AgencyBloc will match the information to the policies you have setup and automatically calculate commissions.  This import process significantly reduces the amount of time spent manually inputting data.

*Note: Once your account has been configured, the import and payment calculation will take only seconds. Our clients have carrier imports containing tens of thousands of records; it takes less than 2 minutes to process these files.

In the event some carriers aren't providing you with electronic commission statements, AgencyBloc supports a "Standard Import" that can still assist in streamlining commissions processing.

Step 5: Calculate/Reconcile Commissions

Reconciliation is a simple process. When commissions are imported, you'll see which policies were linked to the carrier's statement, each payment that was calculated and any policies that didn't match. AgencyBloc displays any exceptions that require further investigation as well as a quick snapshot of total premiums, total commissions payable and net commissions.

Step 6: Generate Commission Statements

Once all your carrier commissions are reconciled for the payment period, you're ready to generate commission statements.  Statements can be run in spreadsheet or PDF format. You can run statements monthly, bi-weekly or daily if you choose. Statements can be organized by sub-agency in order to facilitate paying multiple companies under your agency.

So, those are the 6 steps it takes for AgencyBloc to handle your commissions for you. Remember that the first 3 steps are done when you first set up your AgencyBloc account and import your commissions data. AgencyBloc will keep all of that information and will only require steps 4-6 each time you go to process commissions. You'll only need to set up new policies or payees are when they arise, and you'll be a pro by then!

To see it for yourself, schedule a personalized, 1-on-1 demo with someone from the AgencyBloc team.

Commissions Processing

Kelsey Rosauer
Kelsey Rosauer

Kelsey is the Marketing Brand Specialist at AgencyBloc. She plans and creates educational resources to help our customers organize, automate & grow their insurance agency. Favorite quote: "I am convinced that life is 10% what happens to me and 90% how I react to it." —Charles R. Swindoll  More articles

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