Premium Calculation

Seamless calculates the premium breakdown by combining various factors to ensure accuracy and transparency. Here’s how it works:

1. Tariff Premium: The starting cost of the insurance product based on the coverage and risk factors.

2. Adjustments:

   1. Underwriting Adjustments: Modifications applied at the policy or cover level.

   2. Sales Discounts: Discounts added during the quotation process.

   3. Customer Discounts

   4. Promotion Discounts: Reductions applied using promotion codes.

   5. Payment Discounts: Discounts or charges based on payment terms (e.g., lump sum vs. installments)

3. Commissions:

   • Product Commission: Compensation built into or added to the premium.

   • Sales Commission: Payments to sales agents, affecting the total premium.

4. Taxes and Policy fees: Any applicable taxes or regulatory fees are added to the premium.

Certain components (customer discounts, payment discounts, e.g) require specific features and setup. If you need to use these but don’t see them, please reach out to our Support team for assistance.

Underwriting adjustments allow you to adjust premiums at both the Policy and Cover levels.

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• Enter the adjustment percentage in the UW Adjustment white box.

• Use button to expand and view all adjustment factors for each cover.

• Toggle between Policy and Cover levels using button

• Add comments for the adjustment using button for clear documentation.

Note: Fixed-price covers and taxes (e.g., Hussopp) are not affected by underwriting adjustments.

Sales discount allow you to adjust premiums at the Policy level.

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Enter the discount percentage in the Sales discount white box.

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• Enter the promotion code in the Promotion Code box

• Seamless will validate and apply it to the quote.

  • An error message will appear when the code is invalid

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• The discount is calculated, and the premium is reduced accordingly.

Please see Promotion discount setup for more information.

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• Enter the promotion code in the Promotion Code box

• Seamless will validate and apply it to the quote.

  • An error message will appear when the code is invalid

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• The discount is calculated, and the premium is reduced accordingly.

Please see Promotion discount setup for more information.

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To apply a payment discount, select a payment option in the quote by clicking the Edit button.

• Payment options are defined in product setup.

• The discount will only affect the premium if the Payment Options in Quotes feature is enabled. Otherwise, the payment option will be selected in the shopping cart without impacting the premium.

Product commission refers to a percentage paid to sales agents, distributors, etc. for selling specific insurance products. It is a predefined rate configured for each product and can also be adjusted per quote if needed.

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• Enter the percentage in the Product commission white box.

• The product commission calculation varies based on the type: Add-On Commission displays above the final premium, while At-Cost Commission displays below the final premium.

  • For detailed information, refer to Product Commission Details.

Sales commission is a percentage paid to sales agents, brokers, or distributors as compensation for selling insurance policies.

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• Enter the percentage in the Sales commission white box.

• The sales commission calculation varies based on the type: Add-On Commission displays above the final premium, while At-Cost Commission displays below the final premium.

  • For detailed information, refer to Sales Commission Details.

Sales commission amount is paid to sales agents, fronting companies, or distributors as compensation for selling insurance policies.

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By default, the Amount toggle is turned off and disabled at the policy level

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The Amount toggle can be turned ON when the Sale Commission at the Cover Level

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• You should switch the Amount toggle to ON to apply the sale commission amount at the cover level.

• Enter the Sales commission amount in the white box of the Amount column.

• The sales commission calculation varies based on the type: Add-On Commission displays above the final premium, while At-Cost Commission displays below the final premium.

  • For detailed information, refer to Sales Commission Details.

• Note: When MTA, the user is unable to change the value type of the sale commission. For example, a policy has a sale commission with an amount value, the user cannot change to the percentage for the MTA quote, and vice versa.
  
  

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An insurance policy fee is a separate charge that an insurance company may impose in addition to the premium for an insurance policy. The fee would be defined in Product Setup, and can’t be changed in quotation or policy period. Refer to Policy Fees for more details

There are 3 levels where commissions can be set:

1. Sales Channel

2. Organization

3. Product

Commission logic: Channel overrides Organization, and Organization overrides Product.

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