Simple and Automated Commission Tracking Matters for Insurance Brokers and Agencies
Commission tracking for insurance brokers and agency owners must be simple, accurate, and flexible enough to handle diverse carrier commission structures and policy calculation methods. The reconciliation process is critical. It determines how and when producers and agencies get paid for the benefits policies they sell and manage. Staying on top of this process every month ensures that all expected commissions have been received, accounted for accurately, and distributed correctly before payments are processed.
However, commission tracking can be complex, time-consuming, and prone to errors, especially when it’s handled as a manual process. Automating carrier statement reconciliation can significantly reduce the administrative burden, improve accuracy, and optimize agency efficiency.
Common Challenges in Commission Tracking
Over the years, we’ve worked closely with health insurance brokers and have identified several pain points in the commission tracking and reconciliation process:
It Takes Too Long to Import Multiple Carrier Statements
Each insurance carrier has a unique commission statement format. Just when agencies establish a process, carriers often modify their statement formatting, forcing agencies to quickly adapt to the changes. This continuous adjustment creates inefficiencies and increases the likelihood of human error.
Dependence on a Single Employee
Many agencies rely on one person to process commission statements, often using complex spreadsheets that no one else fully understands. If that employee is unavailable or leaves, commission processing can be delayed, leading to payment issues and internal disruptions that can be time-consuming to resolve.
Missing Out on Commission Revenue
Without a real-time, automated reconciliation process, agencies may not catch discrepancies between expected and actual commissions. Changes due to policy expirations, carrier errors, or adjustments often go unnoticed, leading to lost revenue.
Lengthy Commission Payment Research
When producers question their commission payments, agencies often struggle to retrieve the necessary data quickly. Without a centralized system, researching past payments becomes a time-intensive task, slowing down responses and frustrating both producers and agency staff.
How Long Does Manual Commission Reconciliation Take?
Many agency owners report that it takes one person between 40 to 80 hours per month to reconcile the previous month’s commissions manually. This overwhelming workload leads to burnout and resignations, yet it’s such an essential function—after all, commission revenue keeps the agency running.
However, agencies that have embraced automation have transformed their commission tracking, reducing the process from days or weeks to just a few hours. The key lies in having the right tools to streamline incoming commission reconciliation and outgoing payment management.
How BenefitsBridge Automates Commission Tracking for Insurance Brokers
BenefitsBridge, a CRM for health insurance brokers specializing in employee benefits, offers robust commission tracking and reconciliation features. Automated commission tracking helps insurance brokers and agencies optimize their internal processes while providing confidence in their commission revenue accounting.
How BenefitsBridge Streamlines Commission Tracking for Insurance Brokers:
Automated Carrier Statement Reconciliation: BenefitsBridge imports and processes carrier statements, regardless of format changes. It detects differences in expected and received payments, allowing for quick review and correction.
Real-Time Commission Visibility: Agencies gain full visibility into commission calculations with commission reports and dashboards ensuring transparency in payments and reconciliation.
Simplified Producer Commission Splits: The system handles multiple types of commission splits and automatically applies house and producer commission splits for a variety of policy types, reducing the risk of manual errors.
Reduced Dependence on Key Personnel: A centralized, automated process ensures that commission tracking is no longer reliant on one person’s knowledge or complex spreadsheets. Not only does this reduce agency risk, but it frees up time for resources to focus on more high value tasks.
Fast Research & Dispute Resolution: When producers have payment questions, agencies can quickly access historical commission data, improving response times and satisfaction.
Transform Your Agency’s Commission Tracking with BenefitsBridge
Health insurance brokers managing multiple carrier commission statements and producer splits can streamline operations, reduce risk, and enhance efficiency with an automated CRM solution like BenefitsBridge.
Is your CRM helping or holding you back?
BenefitsBridge by ForgeXRM, built on the Microsoft Power Platform, is specifically designed for health insurance brokers, offering unparalleled advantages over other CRM solutions.
With streamlined workflows, enhanced security, and unmatched scalability, BenefitsBridge empowers benefits brokers to boost productivity, deliver personalized client experiences, and stay ahead of the competition. Built on Microsoft Dynamics 365 and the Power Platform, this familiar and flexible CRM solution is designed to support your agency’s growth and operational efficiency—now and well into the future.
Watch the BenefitsBridge Overview Video to see how it works!
Contact ForgeXRM today to schedule a demo and discover how BenefitsBridge can simplify and automate your agency’s commission tracking.
By Ryan Plourde, ForgeXRM, www.forgexrm.com
