Commissions and payouts

Commission is worked out when premium is written, shared between the people who sold the policy, passed up the sales hierarchy as overrides, taken back when a policy is cancelled early, and paid in payout runs.

Commission schemes

Distribution > Commission schemes sets the rates. A scheme can apply to a channel, a line of business, a product, or any mix of these, between two dates. For each policy the most specific active scheme wins: a product scheme over a line scheme, a line scheme over a channel scheme; Priority breaks ties. A scheme set on the intermediary's own page is used first when it fits.

Each scheme has:

• a new business rate and a renewals rate (endorsements on a renewed policy use the renewal rate);
• overrides: a percent of the premium for the agency the seller reports to (level 1), the one above it (level 2) and so on;
• clawback: when a policy is cancelled within the set number of days, paid commission is taken back in full; after that, in proportion to the premium refunded, or in full if you choose.

Without any scheme, the intermediary's own rate (or the product rate) is used as before.

Splitting commission

When two intermediaries sold a policy together, open the policy's Commission split tab and give each one a share. Commission booked from then on (endorsements, renewals) is divided by the shares, each at their own scheme's rate.

Clawback

When a policy is cancelled, unpaid commission is cancelled. Commission already paid is clawed back with a negative commission line, which is deducted from their next payout. If clawbacks are larger than what is due, nothing is paid and the balance carries forward.

Payout runs

Distribution > Commission payouts > Draw up a payout puts all pending commission earned up to a date on statements, one per intermediary. Each statement shows the gross commission, the withholding tax kept (the rate on the intermediary's page) and the net to pay.

1. The payout waits as a draft. Users who approve distribution are notified.
2. Approve must be done by someone other than the person who drew it up.
3. Mark as paid, with the payment reference, marks every commission on it as paid.

Bank file downloads the statements as a spreadsheet for your bank. Cancel a draft to put its commission back to pending. On a statement, Commissions lists every line on it.