Commission reconciliation
Also called: comp reconciliation, statement reconciliation, commission audit
Commission reconciliation is matching what each carrier actually paid against what the agency expected to be paid for each policy, and flagging the differences.
Reconciliation compares carrier statements with the agency's own records of policies, effective dates and commission rates. Mismatches show up as missing payments, wrong rates, unexpected chargebacks or policies the carrier credited to the wrong agent.
Done by hand in spreadsheets, it often gets skipped. Done consistently, it recovers money the agency is owed.
Unreconciled commissions are revenue the agency earned but may never receive.
"Monthly commission reconciliation caught two carriers paying renewals at the wrong contract level."
How do you reconcile carrier commission statements?
Compare each statement line with what you expected for that policy, based on effective date, product, contract level and agent, then flag missing payments, wrong rates and unexpected chargebacks to follow up with the carrier.