Definition

Person, organization or group that is independent of the insurance company, with a special legal position in relation to the customer. The broker task obliges the broker to act in the interest of the customer.

Use

In Collections/Disbursements, a broker is created as a business partner with Contract Partner (MCI) role.

Insurance companies use brokers to handle the collections and disbursements for part of their insurance contracts. The brokers collect premiums from the customers assigned to you and deduct commission where appropriate. Brokers transmit information about the collected premiums to the insurance company, and transfer these amounts to the insurance company. The insurance company compares the information from the broker with the open items on customer and broker accounts and executes the required postings.

Assignment of a customer to a broker is time-dependent.

Integration

The broker contract is the basis for the relationship between broker and insurance company. A broker can have one or multiple broker contracts (for example, one broker contract for each LoB). At least one insurance object from category Broker Contract is created for each broker in Collections/Disbursements. At least one insurance object from category Broker Contract can also be created for each broker in Collections/Disbursements.

One or more contract accounts are managed for each broker, to control settlement between brokers and insurance companies.

Example

Brokers can be persons, agencies or companies.

This means that the employing company that pays direct insurance for employees to the insurance company as a premium total could function as the broker.

A broker could also be an individual such as Adam Smith .

The broker contract concluded with the insurance company is the basis for the work. The premiums collected from customers, and the open items, are posted to a broker account assigned to the broker. The broker may also have concluded a commission contract with the insurance company to receive commission for work. The due commission is posted to a separate commission account. The broker can also use a clarification account to clarify items that cannot be assigned.