This function allows automated commission calculations using a Policy and Customer matrix.
Policies are grouped by Policy Commission Groups and Customers are grouped into Customer Commission Groups to facilitate comomissions calculations.
Policy Commission Groups and Customer Commission Groups can be created from Insurance Module Controls.
Customer-Policy Commissions are used in 2 scenarios:
- When commissions need to be calculated and issued on transaction level by a 3rd party (Insurance Agent). The system will automatically calculate commissions due to a 3rd Party, and the invoice generated by the 3rd Party will include the commission working when a transaction is confirmed.
- When commissions need to be calculated at end of month and paid as a period end procedure.
Example Premium - €100.00, Duty €13.00, 3rd Party Commission €15.00, Net Invoice Value €98.00. Commission groups are setup using a matrix of Customer Groups and Policy Groups.
The system can be made to work commissions based on Premium or Commission, New Policies and Renewals, on both Premium and Fees. An exception rule by Insurer (Supplier) can also be applied. Commissions can be calculated on Commission (example 15% of the commission earned), or on Premium (example 15% of Premium).
A simple example is shown below:
|Customer Group||Policy Group||Insurers||Commission - Premium||Commission - Fees|
In this example any customers linked to the Commission Group TIIs will get 15% commission on Premium and 0% Commission This is explained in more detail below.
Policy Commission Groups
The first step is to create Policy Commissions Groups and link these group to the respective Insurance Policies.
Insurance Commission Groups are setup from Insurance Module Controls.
Policy Commission Groups are setup to group Policy Types which will pay out the same commission rate to 3rd parties.
Policy Commission Groups are then linked to Policy Types (Insurance -> Policy Types)
Customer Commission Groups
Customer Commission Groups are setup from Insurance Module Controls.