Managing commissions in insurance agencies can be complex. Whether you are using AMS360, HawkSoft, Ezlynx, or Applied Epic, efficient commission tracking and processing are essential for success. In this blog, we’ll break down the process of setting commission rules, importing commission statements, reconciling them, and paying out agents, using these popular insurance software platforms.
1. Setting Commission Rules
The first step in configuring commissions in your chosen software is to set up commission rules. These rules dictate how the commissions will be calculated for your agents and ensure accuracy and consistency across all transactions.
Here’s how you can manage commission rules in the different software platforms:
Commission Settings: All commission rules are typically managed in a centralized Commission Settings tab within the Commission Processing area. This makes it easy to view and manage all commission rules in one place.
Add Commission Rules: In AMS360, HawkSoft, Ezlynx, and Applied Epic, you’ll create rules for each agent position (Agent 1/2/3). Rules can be applied to specific carriers, lines of business, agents, and policy types (New, Renew, Rewrite). You can set commissions based on a percentage of commissionable premiums or a flat dollar amount.
Set Rule Order: The order in which the commission rules are applied is crucial. Most specific rules should be placed at the top, followed by more general rules at the bottom. You can adjust the order of rules in the system to make sure the most specific rules are calculated first.
Designate Commission Splits: For multi-agent positions (e.g., Agent 2 and Agent 3), you can set commission splits. These splits allow you to pay a percentage of Agent 1 or 2’s commission to other agents, making it easier to track shared commissions for specific clients.
Policy Overrides: If you need to make specific adjustments to a commission rule, for example, if an agent should receive a different commission rate on a policy, you can create overrides. This ensures that specific policy terms are accounted for, like changing the commission rate for renewals or rewrites.
2. Importing & Creating Commission Statements
Once commission rules are set up, the next step is to import and create commission statements. Here’s how to do this:
Commission Statement Downloads: In AMS360, HawkSoft, Ezlynx, and Applied Epic, commission statements can be downloaded from carriers. Once these statements are uploaded, the software will automatically match transactions to the appropriate client and policy.
Spreadsheet Statements: For carrier-provided commission statements in spreadsheets, you can import them directly into the system. These platforms offer import tools to help match each transaction to the correct client and policy.
Manual Statements: In cases where carriers send paper statements or provide commission data in unrecognized formats, you can manually create commission statements within the system.
PDF Statements: For PDF statements, you can either convert the file into CSV format for easy import or manually input the details directly into the system.
3. Managing & Reconciling Commission Statements
Once commission statements are imported, the next task is reconciling them. This step ensures that all data is accurate before making payouts:
Transaction Matching: If a transaction doesn’t automatically match with a client or policy, the platform will flag it as “unmatched.” You can manually match the transaction or mark it as an agency-only commission if it doesn’t apply to a specific client.
Adjust Transactions: If needed, you can make manual adjustments to commission transactions, such as adding, deleting, or modifying entries. The system also allows you to adjust the payout date or modify specific fields like commission percentages.
Reconciliation Process: After reviewing and making adjustments to the transactions, you can complete the reconciliation process. Reconciliation can be done separately from agent payouts, which allows you to reconcile statements in bulk before initiating payouts.
4. Agent Payout & Reporting
Once reconciliation is complete, the final step is paying out your agents. Here’s how the platforms support this process:
Agent Payout: Once transactions are reconciled, go to the Agent Payout tab. Here you can select which transactions to pay, adjust the payout amount if necessary, and finalize the payout process. Once paid, these transactions will be marked as completed.
Agent Paid Statements: After the payout, you can generate Agent Paid Statements showing the total commission paid to each agent. These statements can be exported in CSV or PDF formats for easy distribution.
Commission Reports: The platforms provide comprehensive commission reports that track both the commission paid to the agency by carriers and the commission paid to agents by the agency. These reports can be filtered by agent, carrier, policy type, and other criteria.
5. Simplifying Commission Management Across Software Platforms
No matter which platform you use—AMS360, HawkSoft, Ezlynx, or Applied Epic—the process for managing commissions is streamlined and efficient. By configuring commission rules, importing commission statements, reconciling transactions, and generating detailed reports, insurance agencies can save time, reduce errors, and ensure accurate payouts.
Each of these software systems offers user-friendly interfaces, automated tools, and customizable reporting options to simplify commission management. Whether you’re new to these features or a seasoned user, now is the time to take full advantage of the tools available in your software system to ensure that commissions are managed effectively and accurately.
Conclusion
fficient commission management is essential for the smooth operation of any insurance agency. With platforms like AMS360, HawkSoft, Ezlynx, and Applied Epic, you can automate key parts of the commission process—such as statement imports, reconciliation, and agent payouts—so you can focus on growing your business rather than managing administrative tasks.
Take the time to explore and master your software’s commission management tools to improve efficiency, accuracy, and profitability within your agency.
Need additional support? At FinAcct Solutions, we offer tailored back-office solutions to help you manage compliance, streamline operations, and focus on growing your business. From commission management to document validation, we’re here to support you every step of the way.
Contact Us Today for a Free Consultation
Take the first step toward streamlining your insurance commission and unlocking your business’s full potential. Our experts are ready to assist you every step of the way. Schedule a call now!
Year-End Exclusive Offers
To help you close the year strong, we’re offering special promotions for a limited time:
Sign up for a 12-month contract – Get your 12th month free!
Prepay for 10 months – Enjoy 2 months free!
Prepay for 6 months – Get 1 month free!
Commit to 24 months – Receive 4 months of complimentary non-billable services!
These offers provide exceptional value and ensure you have the support you need to simplify your operations and focus on growth.