How AgencyBloc Processes 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 pay-outs 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 pay-outs 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 over-ride, or agency over-ride. 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.
Step 4: Import Carrier Files
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 get 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.
While not a step in processing commissions, reporting is a critical tool in analyzing your business profitability. AgencyBloc has many reports to support your reporting and analysis needs. All reports are available in a flexible spreadsheet format in case you wish to perform additional analysis.