Program Reconciliation Mastery: E&O Edition

Are you 100% certain your E&O premiums collected match what you've paid to carriers? If there's hesitation, you might be exposing your brokerage to significant risk.

The E&O Reconciliation Challenge

Reality Check:

• 35% of brokers have E&O payment discrepancies
• 20% face coverage gaps due to reconciliation errors
• $5,000+ average exposure from mismatched monthly payments
• 45 days average discovery time for discrepancies
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Beyond Basic Bookkeeping

Traditional Method of bookkeeping focuses on:
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✗ Manual spreadsheet tracking
✗ Quarterly reconciliations
✗ Reactive gap discovery
✗ Time-consuming analysis

The Automate Accounts Program Reconciliation focuses on:

✓ Real-time tracking
✓ Automated matching
✓ Proactive alerts
✓ Instant reporting

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The Three-Way Match System

1. Premium Invoiced:

• Client billing verification
• Rate accuracy confirmation
• Coverage period validation

2. Premium Collected:

• Payment receipt monitoring
• Collection status tracking
• Aging analysis

3. Carrier Payments:

• Remittance verification
• Payment timing monitoring
• Coverage confirmation
• Gap identification

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Smart Reconciliation Features

1) Automated Matching:

• Invoice-to-payment matching: The system automatically identifies invoiced amounts, but payments not collected and provide an exception report for review.
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• Payment-to-remittance linking: Smart algorithms automatically connect premium payments received from clients to carrier remittances, ensuring every dollar collected is properly tracked and remitted, with built-in validation to prevent double-counting or missed payments.

• Variance identification: Advanced comparison engine that automatically detects and categorizes any differences between invoiced amounts, collected payments, and carrier remittances, with intelligent classification of variances based on type and severity.

• Exception flagging: Sophisticated monitoring system that automatically identifies and prioritizes exceptions based on predefined rules, such as payment timing mismatches, amount discrepancies, or coverage period gaps, with immediate alerts to relevant team members.

• Real-time monitoring: Continuous tracking ofall matching processes with instant updates on the dashboard, showing current matching status, pending items, and potential issues requiring attention, while maintaining a complete audit trail of all automated matching activities.

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2) Program-Level Analytics

E&O Dashboard:

• Premium tracking: Real-time monitoring of E&O premiums across your entire book of business, with automated alerts for upcoming renewals, payment due dates, and premium adjustments to ensure continuous coverage.

• Collection metrics: Comprehensive analysis of premium collection efficiency, including aging reports, collection rate percentages, and payment trend analysis with automated flagging of delayed or partial payments.

• Remittance status: Detailed tracking of premium remittances to carriers, including payment dates, amounts, and confirmation receipts, with automated reconciliation against collected premiums to identify any discrepancies.

Success Metrics

Real Results:

• 100% payment matching accuracy
• Zero coverage gaps
• 24-hour reconciliation cycle
• Full audit compliance

Ready to master your program reconciliations? Contact hello@automateaccounts.com to get started today or book a free consultation now.

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