Insurance · 🇺🇸 United States
Commission statements nobody had ever reconciled
A brokerage receiving commission from forty carriers in forty formats had no way to know what it was owed.
US insurance brokerage, ~40 carrier appointments. Client identity withheld — we publish names only with written permission, so this engagement is described by its shape rather than by who it was.
40
Carrier statements reconciled
$34k
Unpaid commission recovered
Monthly
Reconciliation cadence
The situation
- Commission arrived from dozens of carriers, each with its own statement format, schedule and level of detail.
- The books recorded the deposits. Nobody checked the deposits against what the policies should have generated.
What we found
- Commission was booked from bank deposits, so an underpayment simply became the recorded revenue.
- Several carriers had stopped paying renewal commission on policies still in force.
- Producer splits were calculated from the same unverified figures, so producers were underpaid too.
What we did
- Built a policy-level expectation model so booked commission is checked against what each policy should generate.
- Reconciled twelve months of carrier statements and raised the discrepancies with the carriers.
- Recalculated producer splits on corrected figures.
The outcome
- About $34,000 of unpaid renewal commission was identified and recovered, and the reconciliation now runs monthly.
- Producers were paid the difference, which mattered more to the principal than the cash itself.
What we'd flag
Two carriers disputed the historic position and only paid forward. Not everything recovered.
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