Distribution network — coverholders & brokers
Coverholder, MGA and broker coordination with real-time bidirectional sync to the delegating insurers.
What is the distribution-network module?
The distribution network is the module that coordinates coverholders, MGAs, brokers and sub-agents under a single multi-tenant platform, with bidirectional synchronisation to delegating insurers. Every chain actor operates within their own perimeter (customer master data, binding authority, commissions) but shares the policy portfolio with the insurer in real time. The module automates KYC onboarding of new brokers, multi-level commission computation across the chain (coverholder, broker, sub), operational delegation management, and structured deactivation upon mandate termination. It replaces the typical Excel-based management and dual data entry between insurer and producer systems.
Who operates in the distribution network
What the distribution-network module does
- Configurable hierarchies: insurer → coverholder → broker → sub-agent
- Binding authority per line, product, sum-insured, geography
- Hierarchical RBAC on 6 levels with differentiated permissions
- Role-specific portals (simplified UX for brokers on the go)
- Per-actor customer master data + selective sharing
- Structured deactivation workflow on mandate termination
- Near-real-time bidirectional sync between coverholder and insurer
- At-least-once delivery with idempotency key
- Multi-level commissions configured per binding authority
- Commissions computed at issuance, frozen in the BDX
- Broker onboarding with SPID/CIE + KYC + AML screening
- Automatic periodic reporting to delegating insurer
From hierarchy setup to operational management
Hierarchy setup
Network structure definition during customer onboarding: delegating insurer, coverholder/MGA, sub-broker levels. Binding-authority configuration per node (line, product, sum-insured, geography).
Broker onboarding
Broker completes their profile from the portal. Identification via SPID/CIE or video-ID. AML/PEP screening. FEQ signing of the mandate contract. 2FA credential activation. Time: 1-2 days vs 2-3 weeks on paper.
Delegated issuance
Broker issues policies under their own binding authority. Automatic limits check (sum-insured, line, geography). Multi-level commission computation (coverholder, broker, sub). Real-time sync to delegating insurer.
Insurer ↔ network sync
Every policy event (issuance, modification, claim) is propagated in both directions: insurer → coverholder and vice versa. Message-level idempotency key prevents duplicates.
Periodic reporting
Automatic premium and claims BDX generation to delegating insurer. Inbound commission reconciliation (camt.053). Technical-commercial reporting.
Deactivation / run-off
When a broker or coverholder ends the mandate: new-issuance block, in-force portfolio managed to natural expiry, residual commission computation, audit archival.
Technical stack
Impact on network management
Frequently asked questions about the distribution network
What network hierarchies does NewPicass 14.Net support?
Unlimited-depth hierarchies. Typical setups: Insurer → Coverholder → Broker → Sub-agent; Insurer → MGA → Broker; Insurer → General Agency → Sub-agents. Each level has its own binding authority (limits per line, product, geography, sum-insured), its own commission set and its own customer master-data perimeter.
How does the coverholder ↔ insurer synchronisation work?
Near-real-time bidirectional sync (< 3 seconds cross-tenant). Every policy issued, every modification, every claim reported by the coverholder is propagated to the delegating insurer's system and vice versa. At-least-once delivery with idempotency key on messages: no policy lost, no duplicates on retry.
How are multi-level commissions computed?
Configurable per binding-authority agreement. Surety example: coverholder at 18% of gross premium, broker at 30% of net coverholder, sub-agent at 50% of net broker. Commissions are computed row by row at issuance time, separated per chain actor, and frozen in the premium BDX for reporting to the cedent.
How do you onboard a new broker?
The broker completes their profile from the portal: VAT details, legal/physical entity, IBAN for commission payouts, ID document. Automatic identification via SPID or video-identification with liveness. AML + PEP + sanction screening. FEQ digital signing of the mandate contract. Typical time: 1-2 business days vs 2-3 weeks on paper.
Can you manage separate credentials and permissions per broker?
Yes. Hierarchical RBAC (Role-Based Access Control) on 6 configurable levels. Each broker has their own credentials (mandatory 2FA), sees only their own policies and customers, has differentiated permissions on issuance, claims, master data. Network managers see consolidated views. Audit log on every operation.
What happens when a coverholder ends the mandate?
Structured deactivation workflow: immediate block on new policy issuance, in-force portfolio managed until natural expiry or active run-off, residual portfolio-commission computation, audit-trail archival, contractual documentation return. Everything logged and reportable for Lloyd's / IVASS audits.
Continue exploring the platform
Want to see Distribution network — coverholders & brokers in action on your real flows?
45 minutes with one of our engineers, no sales script. You show us your current process and we show you concretely how this module would solve the critical points.