By Ian Pellicano on 2018, August 3

How to work with your Insurance Gateway to ensure your eCommerce site is compliant with revenue reporting

By Ian Pellicano on 2018, August 3
How to work with your Insurance Gateway to ensure your eCommerce site is compliant with revenue reporting

A travel insurance business offering products worldwide can create some challenges for an insurance gateway.  Certain important aspects need to be kept in mind in order to provide accurate reporting for accounting and underwriting reports, especially if you are offering medical insurance as part of your travel insurance package.

Here are some important things to keep in mind when setting up features on your eCommerce website:

1.        Insurance Gateway currency conversion
Your main operational currency needs to be considered.  Transactions are often processed in the customer’s currency, and then converted to the insurer’s bank account currency.  In this case, your website will need to be plugged into live currency conversion rates so that your rates are always current through live feed integration. You will also need to add a percentage over and above this conversion rate as a buffer, to make up for any fluctuations resulting from bank charges (this is of course optional, but will often help you lose less on transaction fees).  It would be wise to discuss the applicable fees with your bank so that the necessary cost predictions can be made. Once this has been worked out, the computation can be easily integrated into your processes by your webmaster and insurance payment gateway.

2.        Bank Transaction details and your Gateway
You can work with your gateway to ensure that your transactions are aptly labelled.  This will make reporting much easier.  Integrating automatic report exports from your website, or through your payment gateway, will give your accountant a reliable source of data for double checking bank transactions.  This will keep your bank accountable whilst giving you more transparency.  These reports should be exported in a format that your accountant can easily use.

3.        Local tax on insurance
Tax paid by your customer is often that of the local country.  With a worldwide audience, the logistics side of this can be pretty complex, however a well-established international payment gateway will help automate transactions based on local requirements. Your webmaster should also be able to assist by integrating the necessary features.

4.        Underwriter’s reports for travel medical insurance
If your travel insurance also extends into travel medical insurance, you may be required to provide additional reports for your underwriter.  This means that your reports need to offer more detail, in the correct format, in order to be easily shared between various departments for reporting purposes.  It would be a smart move to get in touch with your payment gateway and web developers to confirm that data reaches you in a well-formatted, and easy to use, manner for various reconciliation purposes.