How to Streamline Your Commissions Processing
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Learn how you can save time, save money, and get smarter by streamlining your commissions processing runs.
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How to Streamline Your Commissions Processing
- 1. How to streamline your commissions processing Presented by:
- 2. Our Expertise We’ve solved real problems for our clients.
- 3. “ AgencyBloc has made our office more efficient and has saved us time and money. Within the first year we recovered over $20,000 in unpaid commissions! Ellen Comprehensive Financial, Inc. 9/30/2015 |
- 4. “ AgencyBloc has saved me 80 hours in manual calculations for commissions and I would absolutely recommend them for all your commission needs. Loanna MGM Benefits Group 9/30/2015 |
- 5. “ This program has saved us hours and hours; I would recommend it to anyone wanting to be more efficient with their commission accounting and client tracking. Raeann Insurance Annex 9/30/2015 |
- 6. So, how does it work? Our commissions processing requires 6 steps: 3 to initially set it up, and the last 3 steps are to process the commissions.
- 7. Steps 1-3: Set up commissions 1: Setup Policies This can be done either via our import process or manually. AgencyBloc fully supports both individual and group business. 2: Setup Rate Tables Rate tables can reflect percent of premium, percent of commission, per life, or as a flat amount. They can also specify payouts based on carrier, coverage type, or even plan code. 3: Tie Payees to Policies Payees need to be assigned to policies so we can calculate commissions payable when reconciling carrier commissions. 9/30/2015 |
- 8. Example rate table Remember, rate tables can be set up based on percent of premium, percent of commission, per life, or as a flat amount. 9/30/2015 |
- 9. Steps 4-6: Process commissions 4: Import carrier file The most appreciated aspect of our system is Carrier Imports. If your agency is receiving electronic commission statements, we can build import maps for directly importing that information into AgencyBloc. 5: Calculate/Reconcile Commissions 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. 6: Generate Commissions 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. 9/30/2015 |
- 11. Commission Not Received Report 1: by Statement Date Easily see how much commission you received from your carriers each month. The Commissions Not Received report will identify policies that you were expecting to receive commission on but didn't. Get paid everything you deserve. 9/30/2015 |
- 12. Commission Not Received Report 2: by Bill From Date Quickly identify any policy that did not have a payment credited in the respective Bill From Date (Premium Due-Date). 9/30/2015 |
- 13. Our mission is to provide powerful solutions by making the convoluted, straightforward. We want our technology to transform the organizations that use it.
- 14. See how this could work for your agency: Go to www.agencybloc.com to schedule a live, one-on- one demo of AgencyBloc.
Editor's Notes
- Our Expertise…. so what do we know and how did we come to that knowledge? The AgencyBloc software-as-a-service was launched in early 2008, so almost 8 years now, but our complete story is a bit longer than that…. in the early 2000’s we were building and deploying very large custom agency management systems….. and through those experiences, we quickly became immersed not just in technology, but agency operations………... as we scoped out the work, built and supported each custom solution, we spent a lot of time in meetings with agency owners and stakeholders…. each of these experiences and all of those meetings gave us real insight into what the business needs were. As we were wrapping up a project for one particular agency…. we looked at each other and said we were crazy not to not take the knowledge we acquired through these experiences and launch a cloud-based solution that could be easily deployed by both big and small agencies.
- I’ll just quickly touch on 3 different client testimonials or quotes that are specific to commissions processing and then I’ll jump into how our system can hopefully streamline your commission runs. Ellen with Comprehensive Financial - they’ve been with us for about 5 years… she says…
- Loanna with MGM, they’ve been a client for almost three years… she says:
- This is a smaller organization that has also been with us for about 5 years… Raeann says… I know I only touched on three clients, but thankfully we have a lot of clients using our commissions module that tell us we are saving them substantial time and helping them uncover missed commissions.
- How does it work…. so there are 6 primary steps… the first 3 are more of a setup process and then the last 3 are more on the actual processing of commissions - so the final 3 are what would be done on an ongoing and recurring basis.
- STEP 1: This step is actually one of the first conversations a brand new client has with someone on our Client Success Team…. it all has to do with your data, or your book-of-business. Like I mentioned, AgencyBloc is a full-blown agency management system and therefore is used by all aspects of an agency, so hopefully we are migrating or importing more than just core policy information such as contact information for your groups and individuals and then information on your agents and their contracts, licenses, etc…. but for commissions processing, really, all we need is policy number, coverage type and carrier name. STEP 2: After policies…. we have rate tables… these are in their simplest form…. the compensation arrangements you have with your payees, so, in-house and external agents, sub agencies, anyone you pay. 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. STEP 3: For every policy, we need you to tell the system who you want to pay…. so ‘Payees’... and then their corresponding rate table…. Scenarios in our client community range from simply adding one payee like a house agent all the way up to very complicated multi-party hierarchies.
- If you are anything like me, being able to see what is being described is helpful so what I’m showing here is just a screen for adding a new rate.. you can see the variables in play…. rates can vary by Carrier, Coverage Type and even Plan Code. I also want to point out that our system can automatically vary the pay-out rate based on the month number as well, so pay say the writing agent 65% months 1-12, but then drop that percentage clear down to say 15% in months 13 and so on.
- Now the fun stuff…. the actual processing and reconciliation of commissions… STEP 4: The import of carrier data…. our Product Team has built and is maintaining over 800 different and unique file formats… so if you or your commissions processing department is receiving Excel based statements…. usually downloading them from a carrier portal… there is a high probability that we already support the format of that file because an agent or agency within our client community also receives that file. Even if we don’t have a pre-existing map, if it’s Excel based, we’ll build a new one to support your needs… we are often times building upline maps, so not just a carrier file, but your MGA perhaps. The point here is, we are trying to make it as easy as possible for you to quickly import commissions received to the agency so you can quickly calculate what you owe out to your agents and sub-agencies….. and of course, then dig deeper via our reporting to analyze the revenues and net commissions of your organization. STEP 5: Once you’ve imported commissions received… we quickly look at the payees and rate tables that I went over in steps 1-3 and in an instance calculate what is owed and the agencies net commission. If there are 1st month commissions received on a brand new policy… our system will highlight those policies so you can use the carrier provided data to create new ones and then setup commissions on those cases. STEP 6: Once all your carrier commission files have been entered and reconciled…. most agencies will then use our Agent Statement report to create PDF’s that provide a line-item report to reflect the check or direct deposit
- Uncover Missed Commission Payments… In the next few slides, I’m going to try to illustrate how our system can help you identify missed payments… so really what we are after here is... Has a Carrier either: - never paid the first/initial payment OR - skipped a month or more on any given policies
- We have two primary ‘Commission Not Received’ reports…. the first one is ‘by statement date’. This report relies on a key piece of information inside your account pertaining to the frequency in which the carrier pays you commission on any given policy. DEMO ACCOUNT - SHOW COMMISSION SETTINGS When running this report, you'll first select a Statement Date or a range of Statement Dates in which to look for missing payments. You'll then choose between one of the following options: For the Commission Period: So.. based on the Commission Frequency of each policy, this report will return any policy that didn’t receive payment during the selected commission period. OR, simply punch-in a number of days and we’ll return any policies that have not received commissions in that day count. --------------------------------- SEGWAY.... Now we understand that it can take carriers a few months to start paying commissions on a new policy or get caught up on late payments.... which is why we have this next report...
- Commission Not Received - by Bill From Date - this report looks at the actual premium months (or what we call Bill From Date). We will output any policies that did not have a payment credited in their respective Bill From Date/premium due date'.... regardless of statement date…. DEMO ACCOUNT - PAYMENT HISTORY
- I made sure one of the final slides for today was our Mission statement, which reads….”Our mission is to provide powerful solutions by making the convoluted, straightforward.”.... for a lot of agencies, particularly MGA’s with a lot of agents…. the processing of commissions is one of the most if not THE most complicated aspect of their business. We have been very thoughtful…. since the very beginning of the question ‘how easy is our software to use?’ We’ve put a lot of effort into ensuring that even as we add more enhancements and capabilities to ensure that it’s still easy to use… because at the end of the day… .finishing our mission statement…. “we want our technology to transform the organizations that use it”… the more our product is embraced by our clients and end users… the more we get a chance to add value.
- Hopefully you were able to get a sense on our commissions module, but we pride ourselves on providing one-on-one personalized demos - so if you are interested, jump out to tour website and schedule a demo. Thanks everyone!