What is carrier statement reconciliation?

Carrier statement reconciliation is matching what an insurer reports on its statement against what your broker management system expected on the same policies — then investigating and clearing every difference. It is the control that keeps a brokerage’s commission income, commission receivable, and premiums payable accurate, and it is usually the biggest single task in month-end.

What the reconciliation confirms depends on the billing type:

• Direct bill — the insurer collected premium and pays you commission by statement. Reconciliation confirms the carrier paid the commission you earned, and clears the commission receivable.
• Agency bill — you collected premium and owe the insurer the net. Reconciliation confirms the premium payable you owe and ties it back to your trust position.

A workable monthly process:

• Match each statement line to the policy in your system.
• Compare the reported amount to the expected amount at the booked rate or split.
• Flag missing policies, rate errors, cancellations, endorsements, and timing items.
• Resolve brokerage corrections and raise carrier queries promptly.
• Clear what’s settled; carry forward and age what isn’t.

Aged balances are the early-warning signal: an old item on the premiums-payable or commission-receivable schedule usually means a policy that cancelled but was never reversed, a misapplied remittance, or an unresolved carrier dispute.

Applied Epic includes direct-bill reconciliation and statement matching that compare statement amounts to expected amounts on policies — but the differences still have to be reviewed and resolved by a person each month.

For the full process across agency and direct bill — including the premiums payable schedule, disputes, and producer splits — see our carrier statement commission reconciliation guide.