One of the steps when creating a policy is giving the details about commission split. This means that when inserting commissions, the total amount of the commission can be split between different persons.
Now, when creating a policy, the last step gives you a possibility to split the overall commission between different persons. For example, if you set the commission of the policy for 10%, this 10% is now being split here.
Commission split types
From the "Type" column, you can specify if the sum is % of internal commission, % of gross premium or a specified sum:
Percentage of internal commission
The percentage of internal commission specifies the commission percentage which the person will get as commission. This is the percentage is calculated from the overall insurer commission - this is then split according to the given proportions.
When using different percentages of internal commission, these have to add up to until 100%.
If you try to insert proportionally more than 100% altogether commission, then the system shows this in red. If you still want to click on "Add", you will also get an error notification.
Percentage from the gross premium
When this is chosen, you can specify the percentage from the gross premium of the policy which the person will get as commission. The calculation here will be from the gross premium, not the commission sum - if someone gets 10% from the policy gross premium of 200€, their commission part is 20€.
If you decide to calculate internal persons commission using the percentage from the gross premium, the sum still needs to match with the one provided above.
For example, in case where the premium is marked as 200€ and the overall commission % is marked as 10%, the maximum sum therefore can be up to 20€. If you try to insert figures that are larger than overall commission, you will get an error message.
Add commission as a specific sum
The third option to insert commissions for several persons is to insert a specified sum. This specifies the exact sum which the person will get as a commission. When you choose this option, the second row becomes active.
As previously, when inserting figures, these cannot exceed the provided overall commission. When trying to insert a larger sum, the "Total" figures will become red to warn you about it. As previously, if you still try to add these kinds of figures, the system will not allow it and will give an error message.
Add commission with different types
There is also an option to add commission as different types to each person. All the figures together can't exceed the provided commission sum.
As previously, if you still try to add figures which together exceed the overall commission sum, the system will not allow it and will give an error message.
For all these instances, if you have checked the box "Allow overcommission" in the policy settings (see more about commission settings this in this article), the system shows figures in red, but you are still allowed to add the policy with these figures.
Note: if you have marked more than 100% of the sum as commissions for different persons, the rounding correction sum will be the expense of the broker company. Also, when you have not split all the commission, the sum left will go to broker company.