Data & Analytics
A Global Insurance Brokerage | Uncovering Recoverable Commissions
Scrutinized three years of payment and commission data, sourced from over 20 independent systems, to identify and quantify the scale of these lost, unpaid, or uncollected commissions.
Impact At A Glance
$40M Recovered
Uncovered over $40 million in recoverable commission leakage, representing more than 10% of net commissions
Enhanced Revenue Assurance
Provided critical insights into lost and uncollected commissions, enabling the client to reclaim significant revenue
Data-Driven Financial Recovery
Demonstrated the power of comprehensive data analysis across disparate systems to solve complex financial challenges
Project Overview
A top-5 global insurance brokerage firm suspected they were consistently writing off substantial amounts of commission owed to them by payors in the health insurance market. They engaged Liberty Advisor Group to undertake an intensive data collection and analysis project. The goal was to scrutinize three years of payment and commission data, sourced from over 20 independent systems, to identify and quantify the scale of these lost, unpaid, or uncollected commissions.
The Business Problem
The primary business problem was the significant financial loss due to “commission leakage.” Specifically, the client believed that a considerable portion of earned commissions was not being successfully collected from payors. This “recoverable commission leakage” is defined as unpaid/uncollected commission revenue on policies that has not been formally requested, applied for, or received by the client, or is in suspense within the client, but can be recovered. The complexity of tracking and reconciling payments across numerous disparate systems made it difficult to identify and address this issue effectively.
Our Solution
Liberty Advisor Group implemented a rigorous data-centric approach to address the client’s challenge:
- Comprehensive Data Collection: We systematically collected three years of detailed payment and commission data. This data was extracted from a complex environment of over 20 independent systems, requiring careful integration and normalization.
- In-Depth Data Analysis: Our team conducted a thorough analysis of the aggregated dataset. This involved identifying discrepancies, uncollected payments, and patterns of commission leakage.
- Quantification of Recoverable Commissions: Through this meticulous analysis, Liberty identified specific instances of recoverable commission leakage totaling over $40 million. This represented more than 10% of the client’s net commissions from the analyzed period.
The Outcome
The engagement with Liberty Advisor Group delivered a direct and substantial financial benefit to the global insurance brokerage firm. By systematically collecting and analyzing vast amounts of data from fragmented sources, Liberty was able to identify over $40 million in recoverable commissions. This project not only provided the client with the opportunity to reclaim significant lost revenue but also highlighted the critical need for robust data management and analytics to ensure ongoing revenue assurance. The insights gained from this initiative can help the client implement preventative measures and improve their commission tracking processes moving forward.
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