Broker Collections with Int. Broker Reports at Ins. Companies

Use

Insurance companies can use broker collections to regulate payment transactions and communication with customers by using brokers. Communication with the broker takes place using correspondence that is generated when creating broker reports . The broker reports created in the system form the basis for clearing open items from brokers and customers, and for the posting of reported amounts.

Process Flow

  1. Open items are posted in the system. These can be open items from customers for the insurance company, or open broker commissions/costs.

  2. At regular intervals (the start of the month, for example), the insurance company sends a broker report to the broker. This takes place using the mass activity Create Broker Report (IBR50), which you can execute in the SAP Easy Access menu for Collections/Disbursements under Start of the navigation path Broker Collections Next navigation step Periodic Processing Next navigation step Create Broker Report. End of the navigation path

    • When executing the mass activity, the system creates correspondence that is sent to the broker as a broker report.

    • When executing the mass activity, the system creates internal broker reports that can be posted immediately or at a later point in time.

      For more information about this step, see Creation of Broker Reports .

  3. The broker receives the correspondence and collects the open items for the customers.

  4. The broker reports the collected amounts and the commission retained to the insurance company, normally on a system-independent basis (in paper form, as an Excel sheet, or other file format).

  5. The broker pays the entire amount for the report to the insurance company.

  6. The insurance processor checks the report for the broker and compares this with the broker report in the system.

  7. The insurance company posts the checked and compared broker report. For more information, see Posting the Broker Report .

  8. The insurance company compares the payment from the broker with the broker report posting.

Result

The insurance company has processed collections with the broker and updated this in the system. From the viewpoint of the broker, collection took place on a system-independent basis.