Setting the scene:
One of the programs of work that was defined as one of the strategic initiatives for 2020 is
related to wefox’ financial processing. This program aims to improve the efficient flow of
financial data from the insurer to wefox as a distribution intermediary and from there with the
right split to wefox’ broker partner.
In the wefox business model, wefox’ partner brokers sell insurance policies to their customers.
The customer pays the premia for this insurance product straight to the insurance company.
The insurance company compensates wefox for the sale as a wholesale distributor (called
‘pooler’ in the insurance industry). Wefox splits this commission between a component that
remains with wefox as a fee for platform and services and a component that is forwarded as
compensation to the broker.
The amount that wefox receives from the insurance company is negotiated in the cooperation
agreement that wefox signs with the insurer. The level of compensation is negotiated based on
the different product groups, tariffs the insurer sells and the individual conditions (commission
rates) per tariff. The broker receives a share of that commission and can also negotiate their
specific commission rate per tariff.
Product Group Private Liability
Product Tariff Maximo
Condition (wefox) 15 % of the customer’s premia
Condition (broker) 13 % of the customer’s premia
This data is stored in a product tariff database to serve as a calculation basis for our payout
system. To ensure that we apply the correct condition, the correct tariff is related to a contract at
the time of sale.
The operations manager responsible for commissions runs through the following process to
ensure that the broker receives the correct amount:
1. Receive the commission data from the insurer. There is one commission line per
contract being provided that states the amount of commission for this contract
2. Clean and align commission data to make it ready for upload into our commission
3. Upload the commission data and match the data to the right customer & contract
4. Calculate the wefox and broker split
5. Summarize all broker splits for contracts from the respective time frame, build a sum and
pay to the broker twice a month
The model described above has been built out over the last couple of months and was now
piloted in Germany for a couple of months. We are now ready to roll out this system to our other
active markets, namely Switzerland, Austria, and Spain.
1. Based on the information provided, please draw a very high-level data model of the data
objects and relations required for this payout system to work
2. Please draw a high-level business process of the payout process and make some
suggestions where and how this process could be supported through technical system
automation. Please write one short user story for one of your improvements that a
developer could use to build it out.
3. Given the provided information, please come up with a calculation formula that you
would use to calculate the correct broker split.
Some additional remarks:
● When working on the assignment, please keep the 80/20 rule in mind; it does not need
to be perfect but should reflect your way of thinking
● Feel free to reach out in case you have any questions on the tasks
● Document your findings appropriately and presentable in English
● Be prepared to present your findings in a 15 minutes presentation with additional Q&A