Underpaid commissions are one of the most common and most frustrating problems insurance agents face. A carrier sends a commission statement, the numbers do not match what you expected, and now you have to figure out what went wrong and how to get it corrected.
The good news is that most underpayment issues can be resolved if you approach the dispute systematically. The bad news is that most agents do not have a system, so discrepancies go unnoticed or unresolved for months.
Start by comparing the carrier statement line by line against your records. Look at the policy number, the premium amount, the commission rate, and the calculated commission. Any variance needs to be flagged and investigated.
Common causes of underpayment include incorrect commission rates applied by the carrier, missing policies that should have been on the statement, premium changes that were not reflected in the commission calculation, and timing differences between when a policy was written and when the commission was calculated.
Once you have identified the discrepancy, document everything. Write down the policy number, the expected commission, the actual commission, the difference, and the reason you believe the carrier owes you more. Keep copies of the original policy, the commission schedule, and the carrier statement.
Contact the carrier's commission department directly. Be specific about which policies are affected and what the correct amounts should be. Carriers receive hundreds of dispute requests, so the clearer and more organized your documentation is, the faster it gets resolved.
AI Commission Tracker helps agencies catch discrepancies earlier and recover missed revenue. Learn more at www.MetroPointTechnology.com.