Can it handle carriers that only send PDFs or scans?

It can, because the reading step handles native PDFs, scans and spreadsheets alike. Each new carrier format is measured on the evaluation set before its statements are posted without review.

Does it work for agency bill as well?

Under agency bill the agency invoices the insured and remits premium, so reconciliation centers on receivables and the trust account. It can be automated too, and the evaluation will say whether it's worth doing.

How long does a build take?

The 4-week evaluation tests matching on a sample of your real statements. A production build typically takes 1 to 3 quarters, depending on carrier count, AMS data quality and how much posting can be automated.

What if our AMS data is messy?

Inconsistent policy data is a common reason matching fails, so the evaluation measures it early. The system lists the records that need cleaning, which is often useful in itself.

Direct bill commission reconciliation, from carrier statement to posted ledger.

Bluegrass builds commission reconciliation systems for agencies, brokerages, MGAs and wholesalers. They read carrier statements in any format, match each line to your AMS and post the matches, leaving accounting only the exceptions.

Reconciliation rarely gets attention until someone notices a swollen suspense account, an unexplained gap between expected and received commission or a month-end close running a week late.

Talk to an engineer How the evaluation works

What direct bill reconciliation involves today

Under direct billing the carrier bills the insured and pays the agency its commission, usually on a monthly statement. Every carrier formats it differently, and someone in accounting matches each line to a policy, checks the commission and posts it.

When volume outgrows the team, unmatched items pile up in suspense, short payments go unnoticed and producer compensation can be calculated late or on estimates. Each costs money without appearing as a line item.

How automated commission reconciliation works

01
Collect the statements
Statements are gathered from the inboxes, shared folders and portal downloads your team already uses, and each one is identified by carrier and period before any line is read.
02
Read every line
Each line is extracted with its policy number, insured name, transaction type, premium, rate and commission, whatever the carrier calls those columns, from native files and scans alike.
03
Match to your AMS
Lines are matched to policies by policy number or, where that is unreliable, by insured name, effective date and premium. Paid commission is then compared with expected commission.
04
Post or route
Lines that match within your accounting team's tolerances are posted. The rest go to review with the reason, such as an unknown policy, a rate difference or a chargeback with no original entry.
05
Close the period
Each statement ends with a reconciliation report showing what was posted, what was held and why, so the close starts from a short list rather than a stack of statements.

Where people stay in the loop

Tolerances start tight, sending more lines to review than strictly necessary, and are widened carrier by carrier as the matching is measured against your team's decisions. Every posted line records why it matched.

Variances that point to money owed to you, such as short-paid commission or a renewal that never appeared on a statement, are listed separately for someone to chase.

The systems it works with

The system reads statements from wherever your team receives them and posts through the interface your AMS provides. Applied Epic and AMS360, for instance, have their own direct bill entry process, which the system feeds rather than replaces.

Built around the AMS you already run

Including Applied Epic, Vertafore AMS360, Sagitta, BenefitPoint and QQCatalyst, HawkSoft, EZLynx and Momentum AMS. Product names and logos are the trademarks of their owners, and Bluegrass is independent of every vendor shown.

When to build it, and when to buy it

Direct bill reconciliation is now sold as software and as an outsourced service, and either can work well if the product already supports your carriers and AMS.

A custom build is better when the products handle your carrier mix poorly, when you want the matching rules and data under your own control or when per-statement pricing outgrows the work it replaces.

We hold no reseller agreements, partner quotas or revenue share with any vendor, so a recommendation to buy is made on its merits.

What this work costs you today

A quick way to put a number on the problem before talking to anyone, using your own figures rather than ours.

Carrier statements a month

Minutes to reconcile each statement

Loaded cost of an hour of that work ($, optional)

Enter your volume and the minutes each one takes to see what the work costs in a year.

The numbers stay in your browser and are not stored or sent anywhere. Bring the figure to the first call, since it is the baseline any system should be measured against.

Questions about direct bill commission reconciliation

Can it handle carriers that only send PDFs or scans?: It can, because the reading step handles native PDFs, scans and spreadsheets alike. Each new carrier format is measured on the evaluation set before its statements are posted without review.
Does it work for agency bill as well?: Under agency bill the agency invoices the insured and remits premium, so reconciliation centers on receivables and the trust account. It can be automated too, and the evaluation will say whether it's worth doing.
How long does a build take?: The 4-week evaluation tests matching on a sample of your real statements. A production build typically takes 1 to 3 quarters, depending on carrier count, AMS data quality and how much posting can be automated.
What if our AMS data is messy?: Inconsistent policy data is a common reason matching fails, so the evaluation measures it early. The system lists the records that need cleaning, which is often useful in itself.

Related systems

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Certificate of insurance automation

COI requests read from the inbox, checked against the holder's requirements and the policy on file and issued, with every exception routed to a person.

Insurance proposal generation

Client-ready proposals assembled from carrier quotes, your AMS data and your own templates, with every figure traceable to the document it came from.

Built for

Key terms

A senior team that has done this before

We are a small, entirely senior team with fifty years of combined AI engineering, multiple granted patents and Y Combinator founders, from Yale, MIT, McKinsey, Goldman Sachs, Microsoft and Vista Equity Partners. The people who scope your work are the people who write the code.

Selected work

We built the AI transformation roadmap for a top-50 P&C brokerage, and it is saving the firm millions of dollars in vendor fees it did not need to pay.

Clients include some of the largest banks, RIAs, fintechs and AI labs, as well as a top-3 P&C carrier, a top-10 P&C brokerage, a top-5 trucking brokerage, a leading specialty MGA and a leading trucking MGA.

We run only 3 to 5 engagements at a time, so that every client works directly with the senior team.

About the team

Dozens: of insurance companies, RIAs, banks and fintechs we have worked with
50 yrs: combined AI engineering experience
10+ Patents: granted to members of the team
100%: of the IP we build is assigned to you

Find out whether this is worth building for your business.

A 30-minute call with an engineer usually shows whether this is worth building. Within a week you will have a free written point of view, including whether a packaged product would serve you better.