The Insurance & Retirement Services Commissions service automates the settlement of commissions and compensation dollars, as well as communications between insurance carriers and distributors. Commissions bring these efficiencies to both annuity and life insurance products.
Commissions (COM) transmits information regarding agent commission and compensation payments from insurance carriers to distributors for annuity and life insurance products. It also provides same-day money settlement. By reducing the turnaround time for processing and paying commissions, it allows sales representatives to be quickly compensated.
WHO CAN USE THE SERVICE
Commissions (COM) is available to firms that are members of DTCC’s National Securities Clearing Corporation (NSCC). Click here for information on how to become a member of NSCC.
With COM, clients can: Automate settlement of commissions and compensation dollars, along with all other financial transactions, through NSCC, eliminating numerous wire and manual check payments.
Enable the payment of commissions on a daily basis. Increase efficiency and reduce costs by decreasing the resources needed to process commissions and expanding the volume of commissions that can be processed each day. Eliminate debit balances by allowing carriers to consolidate all commission payments and chargebacks applicable to a distributor’s account on a daily basis, thereby eliminating situations where debit balances exist due to chargebacks. Secure confidential data through DTCC’s Securely Managed and Reliable Technology (SMART) network, which provides centralized, end-to-end managed communications for all post-trade clearance and settlement processing.
HOW THE SERVICE WORKS
Using a mainframe or Internet connection, insurance carriers can electronically send one or more files a day containing commission information to DTCC’s National Securities Clearing Corporation (NSCC) subsidiary, which then routes the information to the distributors and settles the monetary payments.
For More Information
To request additional information, please click here.