Automating Agency Premium & Commission Management: An Insurance Broker's Guide

The Financial Impact of Manual Commission Management:

In today's fast-paced insurance landscape, managing agency premiums and commissions shouldn't feel like solving a complex puzzle. Yet, across North America, insurance brokers spend countless hours wrestling with spreadsheets, manual calculations, and the constant fear of missing crucial commission entries. As specialists who've transformed operations for over 100 insurance brokerages, we've seen first hand how the right automation can turn this challenge into a competitive advantage. Our Automate Accounts solution, built on our deep understanding of both insurance workflows and Zoho's powerful platform, isn't just another tool – it's a complete reimagining of how modern brokerages handle their agency premiums and commissions. Insurance brokerages managing agency premiums manually face specific challenges:

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Calculation Complexity
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• Multiple commission tiers (Average 10-20% standard range)
• Carrier-specific commission structures
• Volume-based commission adjustments
• Policy type variations

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Revenue Leakage Points
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• Missed commission calculations
• Incorrect percentage applications
• Delayed premium recordings
• Manual data entry errors

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The Current State:
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Premium Receipt

• Manual entry into accounting system
• Commission percentage lookup
• Manual calculation of commission amount
• Creation of agency bill

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Commission Recording

• Manual verification of rates
• Individual transaction entry
• Separate commission tracking
• Manual reconciliation

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The Automate Accounts Solution:

1. Agency Bill Generation

• Insurance-specific commission rate database: Centralized database maintainingcurrent commission rates for all carriers and policy types.
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• Automated creation of agency bill: System automatically applies the correct commission rates and calculates the net agency payable amount and automatically creates a bill, based on carrier-specific rules and policy types.

• Policy-specific tax handling: Intelligent tax management based on policy type and jurisdiction.

• Complete audit trail: Detailed tracking of every premium and commission calculation for regulatory compliance.

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2. Commission Management System

‍• Carrier-wise rule configuration: Customizablerules engine that adapts to each carrier's unique commission structure andrequirements.

• Volume-based premium adjustments:Automatically calculates and applies volume discounts and bonuses.

• Automated calculation triggers with carrierrules: System automatically applies the correct commission rates based oncarrier-specific rules and policy types.

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3. Financial Integration

• Automated policy-wise GL updates: Real-time general ledger updates ensuring accurate financial reporting at the policy level.

• Commission tracking by policy type: Detailed tracking and reporting of commissions across different policy categories.

• Automated Reconciliation Reports: Based on the monthly bills received from the carrier, an automated reconciliation process is generated between Zoho Books bills and bills submitted by the carriers. An exception report is created flagging policies which are present in the carrier bills, not in Zoho Books and vice versa.

• Industry-compliant revenue recognition: Ensures compliance with insurance industry revenue recognition standards and regulations.

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Financial Impact Analysis
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- Processing Time Reduction per entry:

• Commission calculation: 5 minutes → Instantand automatic
• Agency bill creation: 10 minutes → Instant andautomatic
• Monthly reconciliation: 5 hours → 15 minutes

Direct Cost Savings by reducing administrative time:
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- Revenue Enhancement by identifying revenue leakages
- Cash flow prediction by staying ahead of the bills

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Client Success Metrics
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Large Brokerage Implementation:

• 1,200 policies managed per month
• $10-15M in premiums processed annually
• 100% commission accuracy
• 85% time savings

Medium Brokerage Results:

• 500 policies managed per month
• $1M in premiums processed annually
• Zero calculation errors
• 90% process automation

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Partner with Automate Accounts

As certified Zoho partners with specialized insurance industry expertise, we'll:
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• Analyze your current commission structures
• Configure carrier-specific automations
• Automate your agency billing process
• Provide comprehensive training and detailed standard operating procedures.

Contact us at hello@automateaccounts.com to transform your agency premium and commission management today.

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