The Role of Revenue Reconciliation in the Insurance Industry
Accounting can be a very daunting task and insurance-commission accounting, with its multiple hierarchies, bonus plans, gamification payouts, etc., can be very challenging when depending on manual systems due to the complicated nature of the processes, human error, and also time constraints. A bone of contention between Insurance carriers and distributors for many years has been inconsistencies or payment errors. This often breeds mistrust between the carrier and distributors resulting in additional time being spent on shadow accounting and customer service calls for payment disputes.
There are advanced compensation solutions today that takes the headache out of this tedious process, making it very easy to manage. This tool, which is a part of the VUE Compensation Management Solution, is called Revenue Reconciliation. It forecasts cash inflow based on various parameters set by distributors such as General Agencies, Managing General Agents (MGA), Brokers, etc., and compares expected commissions with the amounts received from carriers, ensuring total accuracy, smooth transactions, and less processing time.
Watch this video to learn how revenue reconciliation helps MGAs in maintaining a progressive rapport with carriers that impacts their revenue growth. Commission payments from carriers.
Revenue Reconciliation helps to improve carrier–distributor relationships by eliminating confusion with user-friendly reports and verification workflows with tools that identify errors and exceptions. Revenue Reconciliation automatically uploads sold policy feeds from carriers, identifies errors, and facilitates drill down into the details of how each policy is paid along with reporting hierarchies for effective, accurate commission payments.