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 Broker Collections


The component allows an insurance company to process payment transactions and communicate with customers using a broker.

A characteristic of broker collections is that the customer does not communicate directly with the insurance company, and is not directly involved in payment transactions resulting from the collection of insurance premiums and the disbursement of claims. In broker collections, the customer communicates almost exclusively with the broker. The customer contracts are managed by the insurance company. The insurance company does not submit any balances to the broker.

A broker can be an agent, a company or another specified third party.

After collecting premiums or disbursing claims, the broker reports collective revenue to the insurance company and makes a payment for the amount of the collected premiums, reduced by the amount of the claims payments, commission and costs for the broker, if required.

On the basis of the information provided by the broker, the insurance company makes the necessary postings, such as clearing open items on customer accounts.

Dependent on agreement, the insurance company can send correspondence to the broker regularly or on demand, in the form of an account statement, for example.

Implementation Considerations

To implement the Broker Collections component, make the Customizing settings given in the IMG structure Start of the navigation path SAP for Insurance Next navigation step Collections/Disbursements Next navigation step Broker Collections. End of the navigation path

Note that you can only implement dunning by dunning procedure for insurance companies in broker collections.

For more information about dunning by dunning procedure for insurance companies, see Dunning and Dunning by Dunning Procedure for Insurance Companies .


Master Data from Brokers

Brokers exist in the Collections/Disbursements system as business partners, to which accounts and insurance objects are assigned. For more information, see Master Data in Broker Collections .

Assignments of Customers to Brokers

Insurance objects for which brokers perform collection and disbursement are assigned to these brokers at master data level in Collections/Disbursements. For more information, see Assign Broker to Insurance Relationship .

Broker Report Processing

The broker report is the basis for collection/disbursement from customers that are regulated by brokers. In a broker report, you clear and post items that are posted to customers for the insurance company and/or to the broker.

Broker collections differentiates between two basic collection processes: System-linked broker collections with insurance-specific broker reports and broker collections with web applications .

For more information about the broker report for the non-system-linked process (from the broker viewpoint), see Broker Report .

For more information about broker report processing with web applications, see Broker Report Processing with Web Applications .


To perform collection/disbursement using brokers, you have to post items to the broker and/or the customer. For more information, see Posting and Document in Broker Collections and Posting the Broker Report .

Account Balance Display

The account balance for a broker reflects the postings to the customer for the broker, and the broker. You can display the account balance for the broker with or without customers.


You can create correspondence for communication with the broker (broker report, account statement, broker contract statement, and so on). For more information, see Creation and Output of Correspondence

Evaluating Open Items

The evaluation of open items enables you to get an overview of outstanding receivables for a broker and associated customers.


Histories are available for customers, broker assignments, broker reports and correspondence. For more information, see Histories .

Broker Hierarchies

You can create and process organizations of brokers, which are structured hierarchically. On the Broker Desktop , processing clerks for the insurance company can process brokers and broker reports assigned to them. For more information, see Broker Hierarchy .