Brokerage Reconciliation
At the close of each month, the Accounts Department initiates the reconciliation process by reviewing the Uninvoiced/Pending Commission Report. This report provides a breakdown of all business placed across various insurer branches where commissions remain outstanding.
Step 1: Follow-Up and Invoice Generation
- The Accounts team uses this report to identify insurers requiring follow-ups for statements.
- After multiple reminders, the insurer provides a commission statement, which frequently does not match our internal records.
- Important: Even if discrepancies exist, do not dispute with the insurer at this stage. Instead:
- Raise the invoice strictly based on the insurer’s statement to ensure timely brokerage collection.
- Preserve internal records separately for reconciliation.
Step 2: System-Based Reconciliation
- The insurer’s statement is then uploaded into Sibro using the prescribed reconciliation template.
- The system performs an automated comparison between:
- The insurer’s reported commissions, and
- Our Operations team’s recorded pending commissions in the software.
- Within seconds, the system flags all discrepancies, such as:
- Mismatched cases (commissions claimed vs. paid)
- Shortfalls (less commission received than expected)
- Overpayments (excess commission received)
- Missing cases (commissions not received at all)
- Mismatched cases (commissions claimed vs. paid)
We uploaded the insurer statement in a certain format, and got the system expose the gaps between insurer statement and SIBRO data. The report of the gaps should be shared with the ops team for further investigation.
Step 3: Root Cause Analysis & Resolution
- Accounts Team’s Role:
- Gighlight discrepancies—but do not correct data.
- Share the reconciliation errors with the Operations team for review.
- Operations Team’s Responsibility:
- Investigate each discrepancy to determine the root cause:
- Process gaps (e.g., delays in submission, incorrect data entry)
- Training needs (e.g., team misunderstanding policy entry)
- Insurer errors (e.g., incorrect recognition of brokerage, incorrect broker code)
- Implement corrective measures to prevent recurrence.
- Investigate each discrepancy to determine the root cause:
Why This Works: The Maker-Checker Advantage
This structured segregation of duties between Accounts (checker) and Operations (maker) ensures Continuous Improvement. By adhering to this maker-checker workflow, the organization systematically reduces errors, improves recovery rates, and strengthens insurer relationships through data-driven follow-ups.