How do I manage insurance broker commissions?
Managing broker commissions means knowing, for each policy, what commission is due and being able to see the totals for a period. When the data sits on the policy, settlement with insurers is easier to check.
Short answer
- Each policy has commission fields, filled in at issuance or renewal.
- Aggregate commission reports add up the totals for a period, based on the policies.
- Before settlement, check the policies in the period and then the aggregate report.
- Cancelled or changed policies need their commission fields corrected manually.
Steps for managing commissions
- Enter the commission on each policy at issuance.
- At renewal, check and update the commission for the new period.
- Filter policies by period and check the commission fields.
- Generate the aggregate commission report for that period.
- Manually correct cancelled or changed policies before settlement.
Common mistakes in commission management on spreadsheets
- Formula errors in percentage calculation per insurer — lead to discrepancies at settlement.
- Cancelled policies not included in adjustment — commission is retained even though the policy is no longer active.
- No record per policy — impossible to see which commission belongs to each policy.
How 4insurance helps you manage commissions
4insurance keeps the commission on each policy and provides aggregate commission reports. The data sits in the same application as the policies and clients, so settlement starts from the same source.