Hoffmann Group: digital transformation in machinery and industrial insurance

Hoffmann & Co. automated broker settlements and contract amendment processing with Nectain, saving ~1.5–2 FTE annually, ensuring 100% remuneration accuracy, and reducing contract update processing from days to minutes.

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Hoffmann Group: digital transformation in machinery and industrial insurance

Industry Insurance

Company size 10-100

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About Hoffmann & Co. Challenges Solution Highlights Results

About Hoffmann & Co.

Hoffmann & Co. is a German insurance underwriter with more than 20 years of experience. They focus on industrial and mobile machinery insurance — including construction equipment, transport machinery, forestry and agricultural machines.

Challenges

Manual Remuneration (Courtage) Settlement

Hoffmann & Co. manages many policy documents, claims files, and technical reports. Documents arrive in many formats: emails, scans, PDFs, maintenance logs, and photos. Broker commission (remuneration) was calculated manually, which led to:

High risk of paying rewards for contracts with unpaid client invoices

Errors in applying the correct commission percentage for each product

Difficulty adjusting remuneration after contract changes (added or removed services)

Manual calculations consumed significant accounting time and introduced a risk of financial inaccuracy or overpayments.

Manual Contract Change Management

Updating existing contracts (adding/removing services or changing pricing) was complex and prone to human error. The team struggled with:

Correct prorated charge calculations mid-cycle

Managing effective dates of changes

Keeping invoicing schedules consistent

Preparing and sending the right documents to clients on time

Nectain’s Task

Automate broker remuneration (courtage) settlement based on invoice payment status.
Ensure accurate commission calculations for different brokers and insurance products.
Implement automated recalculation when contracts change (services, pricing, coverage).
Design a workflow for managing contract amendments with validated dates and inputs.
Automatically generate financial and contractual documents (addendum, invoice, credit/debit notes).
Enable transparent audit trails with full logging of all contract and financial changes.

Solution

STEP 01 Automated Broker Settlement Process

Nectain implemented an automated monthly settlement process that verifies, calculates, and generates broker payments with full accuracy. Key features:

Automated monthly run: The system reviews all broker contracts and accounts. Commission is calculated only for invoices with the “paid” status.
Individual rates: Automatically applies the correct percentage for each product and broker.
Dynamic recalculation: When a contract changes (added or removed services, price updates), Nectain automatically creates new financial documents — invoices or credit/debit notes — and instantly recalculates the broker’s remuneration.

STEP 02 Automated Contract Amendment Process

A dedicated BPMN-driven workflow was designed in Nectain for processing contract changes. How it works:

A manager enters details of the change in a pop-up form (type, date, reason).
The system validates input dates and ensures logical correctness.
It calculates proportional charges or refunds automatically.
Nectain generates all related documents — addendum, invoice, debit/credit note — and emails them to the client using a pre-approved template with clear explanations.
Contract data and future billing schedules are instantly updated.