Personal Lines Brokerages
Accounting for personal lines insurance brokerages
High-volume personal lines brokerages — auto and home — where most business is direct bill, carrier statements are heavy, and the back office is thin.
The pain points we hear
- Direct-bill commission statements that never quite reconcile
- High transaction volume swamping a small admin team
- Carrier downloads in Applied Epic that don't tie to the bank
- Premium trust reconciliation pushed to the bottom of the list
- Owners with no clean monthly read on profitability
How we help
- Direct-bill commission reconciliation against what carriers paid
- Carrier statement matching to Applied Epic each cycle
- Monthly premium trust reconciliation on a fixed schedule
- A repeatable month-end close that finishes on time
- Monthly owner reporting on revenue and profitability
What personal lines accounting actually demands
Personal lines accounting is a volume problem before it is a complexity problem. Most of the book is direct bill: the carrier bills the client, collects the premium, and pays the brokerage its commission on a statement weeks later. The brokerage never touches most of the money, so the trust position is usually smaller than on a commercial book — but the commission receivable is large, fragmented, and easy to lose track of.
The work concentrates in three places. Carrier statements arrive monthly in different formats and have to be matched line by line against what the broker management system expected on each policy — at personal lines volume, that is thousands of lines a cycle. Commission rate variances and missing policy entries hide inside that volume. And because auto and home renew annually with frequent midterm endorsements and cancellations, the commission adjustments never stop.
Done poorly, the symptom is predictable: a commission receivable balance that grows every month and nobody can explain. Done properly, the brokerage knows carrier by carrier whether it was actually paid what it earned.
Ready to talk about your brokerage?
Discovery calls are 30 minutes, no obligation. We'll walk through your books, your reporting needs, and what good would look like.
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