Brokerage Management
While booking a policy, when it comes to setting the brokerage receiveable, there are 2 configurations:
- Rule Based: Here, the software will auto calculate the brokerage as per the Pay In Rules set up at the master.
- Custom: Here, the user will have to type in the brokerage receivable.
The default setting for Pay in Based On can be configured within the Settings > Policy > Policy Master. For instance, Tailormade Group Mediclaim Policies can be set to automatically load as Custom, while Private Car Policies can be configured to use Rule Based as the default option.
How to auto calculate brokerage?
To enable SIBRO to automatically calculate brokerage, it’s essential to understand two key concepts:
- Policy Custom Fields and
- Pay In Rules.
When receiving a new Pay In grid from an insurer, the first step is to analyze the parameters the insurer uses to determine brokerage payments. Once these parameters are clearly identified, we must ensure SIBRO captures them. This can be achieved using Policy Custom Fields, particularly dropdowns and numeric input fields.
Vivek StanleyIn order to make SIBRO auto calculate the brokerage, we need to ensure that the parameters for calculating commissions are one of dropdowns or numeric input fields.
For example, if an insurer (say) ICICI Lombard pays us the broker commissions for Private Car policies based on (say) State, Engine CC, Vehicle Age and Fuel type, then we need to capture all those details using policy custom fields.
| Field name | Policy custom field type | Notes |
|---|---|---|
| State | Dropdown | Should be a dropdown of all the states & UTs |
| Engine CC | Input (with Is Number: Yes) | Should have Is Number set as Yes |
| Vehicle Age | Option 1: Input (with Is Number: Yes) | Should have Is Number set as Yes |
| Vehicle Age | Option 2: Dropdown | List of years as a dropdown. |
| Fuel Type | Dropdown | Should be a list of possible fuel types |
At Settings > Policies > Policy Master > Policy Custom Fields, we have set up State, Engine CC, Vehicle Age and Fuel type as Dropdown & Input with Is Number: Yes as required.
Let's say Delhi based petrol vehicles with Engine CC between 1000 & 1500 gets 45% of Net Premium as brokerage, and Delhi based non-petrol vehicles with Engine CC between 1000 & 1500 gets 20% of Net Premium as brokerage. Then, we can create 2 pay in rules for the same.
We created Pay In Rule #4 for Delhi based Petrol vehicles with Engine CC 1000 to 1500. We created Pay In Rule #5 for Delhi based Non-Petrol vehicles with Engine CC 1000 to 1500. At Rule #5, though we did not specify the fuel type as Diesel, CNG or Electric, Rule #4 impleis that Rule #5 is for Non-Petrol.
- Single Matching Rule:
If a policy meets all the conditions of a Pay In rule for a specified insurer and product, the corresponding brokerage percentage from that rule will be automatically applied upon saving—provided Pay In is set to "Rule Based." - Multiple Matching Rules (Different Condition Counts):
If two or more Pay In rules match a policy entry, the system will prioritize the rule with the highest number of conditions.
Example: For a Delhi-based petrol vehicle with an engine CC between 1000 and 1500, both Rule #4 (3 conditions) and Rule #5 (2 conditions) may apply. In this case, Rule #4 will be selected because it has more conditions. - Multiple Matching Rules (Same Condition Counts):
If multiple applicable rules have the same number of conditions, the system will apply the most recently created rule.
Example: If one rule grants 20% brokerage for all Delhi petrol vehicles, and another (newer) rule grants 25% for the same insurer, product, and date range, the 25% rule will take precedence.