How to reconcile carrier commission statements
A practical guide for small and midsized P&C insurance agencies.
Commission reconciliation means checking every line on every carrier statement against the policies in your book, so you know what you were paid, what it was for, and what is still missing. Most agencies do it monthly. Here is the process, step by step.
1. Gather every carrier statement for the month
Download each carrier's commission statement for the period. Carriers send them in different formats (PDF, Excel, CSV) and lay them out differently, so keep a simple checklist of which carriers you expect a statement from each month.
2. Put the statement lines into one consistent format
For each line, you need the same core details: policy number, insured name, effective date, premium, and the commission amount actually paid. The amount actually paid is the starting point for reconciliation.
3. Match each line to a policy in your book
Look up each statement line in your book of business. The policy number is the first check, but it is not always enough. Carriers sometimes format policy numbers differently, so confirm the match with the effective date, line of business, and premium. See why carrier policy numbers don't match.
4. Flag what doesn't match, and why
Some lines will not match cleanly. Common reasons include:
- The statement line has no policy number.
- The policy is not in your book.
- More than one policy could be the match.
Write down the reason for each exception so your team can resolve it instead of re-researching it.
5. Follow up and close the month
Work through the exceptions: correct your records, or follow up with the carrier on outstanding items. When every line is either matched or has a documented follow-up, the month is reconciled.
6. Keep what you learned for next month
When you match a line by hand, note the carrier's policy-number variation or the insured name it used. The same differences tend to show up on the next statement.
How EZ Commissions handles these steps
EZ Commissions was built to take this process off your team's desk:
- Read: Upload a CSV, Excel file, or PDF. There is no template to fill in. If the layout is new, our team maps it for you.
- Match: Each line is checked against your book using the policy number, effective date, line of business, and premium, with a confidence score for each match.
- Review: Unmatched lines are flagged with the reason, so you can focus on resolving them.
- Remember: When you match a line by hand, EZ Commissions remembers that carrier's policy-number variations and insured names for your agency, reducing repeat work on the next statement.
Explore the workflow at your own pace with a private, 48-hour demo using sample data. No appointment or live demonstration needed.