How a Insurance Company Improved Broker Commission

In the insurance industry, commission reconciliation is a critical yet often challenging process. A high-volume insurance broker selling over 20,000 policies monthly faced significant inefficiencies in their reconciliation process. With a match rate of less than 60% and considerable time investment, the process had become a major bottleneck in their operations.

Gaurav

Marketing

The Challenge

The brokerage firm faced several challenges with its manual commission reconciliation process:

Time-Consuming and Error-Prone: The reconciliation process took up to seven days each month, which was both inefficient and susceptible to errors.
Delayed Discrepancy Identification: There was a slow identification of discrepancies between booked and received commissions, delaying necessary corrective actions.
Delayed Partner Follow-Ups: Follow-ups with partners regarding missing commissions were often delayed, impacting financial operations.
Limited Real-Time Visibility: The firm struggled with limited real-time visibility into pending commissions and the overall financial status, hindering effective decision-making.
Potential Revenue Loss: Overlooked discrepancies could lead to potential revenue loss, as errors were not identified and addressed promptly.

Solution Implementation

FinnOps developed a sophisticated automated reconciliation system featuring:

An intelligent matching rule engine
Multi-source data integration capabilities (e.g., PDFs, Excel, JPGs, CRMs).
Automated policy tagging and categorization
Real-time reconciliation dashboards

Results Achieved

Accelerated Revenue Realization: The reconciliation process was reduced from seven days to less than one day, achieving a 93% faster revenue realization.
Enhanced Financial Visibility: Provided real-time views of pending commissions and instant access to key financial metrics.
Improved Operational Efficiency: Achieved a 99% reduction in manual effort and eliminated human errors in the reconciliation process.
Increased Revenue Capture: Identified previously overlooked discrepancies, resulting in a 5% increase in realized commissions.
Faster Partner Communications: Enabled automated generation of discrepancy reports for immediate submission to partners.

Business Impact

The solution transformed the firm's commission reconciliation from a time-consuming liability into an efficient, automated process. The dramatic reduction in processing time and human error, combined with improved commission capture, delivered significant operational and financial benefits

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