Arrange Producer Splits

Learning Objectives

After completing this unit, you’ll be able to:

• Discuss the purpose of producer splits in brokerage revenue management.
  
• Identify the two types of producer split models.
  
• Create an explicit split arrangement.
  
• Create a role-based producer split assignment.
  

Managing Producer Splits in Brokerage

So far, you’ve explored how Insurance Brokerage helps brokerages structure insurance plans, from setting rates to defining contribution models and eligibility rules. These steps ensure policies are financially sound, fairly structured, and compliant—but the work doesn’t stop there.

Brokerages generate revenue in different ways, with commissions being their primary income. Carriers pay brokers a share of premiums for placing business, which is then split between producers and the brokerage. Managing these producer splits accurately is critical for timely payouts, financial forecasting, and maintaining healthy producer relationships.

This unit focuses on producer splits—the mechanism that determines how commissions are distributed. Whether you have a single producer and the house (the brokerage itself) sharing a split or multiple producers with tiered percentages, you need both accuracy and flexibility for smooth revenue tracking and payout processing.

With Insurance Brokerage, you can:

• Create, manage, and update producer splits at the account or policy level.
  
• Inherit splits across policies or update them in bulk when producer roles or structures change.
  
• Choose explicit or role-based assignments to suit small and large teams.
  

It’s time to discover the two primary ways to configure producer splits.

The Producer Split Model

The model gives you two ways to configure splits: explicit splits and role-based splits. Try saying that three times fast! With an explicit split, you assign percentages to specific individuals, for example, 60% to Producer A and 40% to Producer B. This method is ideal for smaller teams or stable producer relationships. Role-based splits are better for larger teams with frequent changes. This method assigns percentages to roles and links an individual producer to each role, say 60% to a Primary Producer and 40% to a Secondary Producer.

The diagram shows the main objects in an explicit split arrangement.

The table describes the objects and their relationships.

There’s a bit more to know about role-based splits. They introduce an extra object called Producer Split Role Assignment, which links roles (like Primary Producer) to specific producers at the account or policy level.

Instead of naming individual brokers in each line item, you designate roles and fill them in later with the specific producers. It’s useful when your brokerage frequently reassigns producer responsibilities. In this case, you just update the roles without having to reconfigure the entire split arrangement.

Create Explicit Split Arrangements

Time to check back in with Cumulus Brokerage to see how Julia sets up an explicit split for Sally’s Aviation. In this scenario, the split is simple: 60% to the broker, Tommy Spade, and 40% to the house.

Julia creates a Producer Split Arrangement, specifying details such as its type, line of business, and line of coverage.

She adds a line item for Tommy’s arrangement, with a Split Type of Commission and a Split Percentage of 60%.

Julia assigns this new arrangement to Sally’s Aviation at the account level and sets the Line of Business and Line of Coverage.

Now, any new or existing commissions associated with this account will be allocated according to the assigned percentages.

Create Role-Based Assignments

For role-based arrangements, the process is similar but includes the Producer Split Role Assignment object to reflect the role of each producer.

On Sally’s Aviation account page, Julia designates producers to various roles (such as Primary Producer, Secondary Producer) for the Employee Benefits line of business.

Then, she creates a new Split Arrangement. For each split arrangement line item, she designates the Producer Role rather than a specific Producer.

This line item references the new role split arrangement and allocates a 40% split percentage to the primary producer.

By configuring splits by role, Cumulus can easily reassign individuals if producers change—without having to alter every percentage line item.

In this unit, you learned how to configure producer splits—a key step in allocating commissions. With explicit splits, you specify exact percentages for each person. With role-based splits, you assign percentages to defined roles, making it easy to manage large or evolving teams. In both scenarios, Insurance Brokerage makes your commission-allocation process straightforward and adaptable.

Once your producer splits are in place, you can process commissions and track revenue. In the final unit, explore how Insurance Brokerage automates commission statements and expected revenue calculations—helping brokerages monitor financials with confidence.

Resources

• Salesforce Help: Producer Split Management