For years, insurance accounting has been a tough and time-consuming job. With so many carriers sending commission data in different formats—sometimes Excel files, other times PDFs, or even physical mail—it often means agencies must spend hours inputting information by hand. This process can cost more than the commissions themselves, especially for small payments like dental policies. But now, artificial intelligence is changing the way this work gets done.
Chase Petrey, president of Applied Pay at Applied Systems, explains how AI is cutting down the tedious work while making things more accurate. Applied Systems has created an AI tool called Applied Recon, which works inside their management system, Applied Epic. This software can read commissions from any format, do all the calculations automatically, and update accounting systems without human input. It’s careful work, too—Petrey says their models achieve more than 99% accuracy, much better than what people usually manage.
For agencies, this means fewer mistakes and a faster process. It also lowers administrative costs by reducing the time spent on data entry and checking. Instead, teams can focus on smarter financial decisions like optimizing cash flow and planning strategies.
AI doesn’t replace people but helps them work better. Petrey points out that humans are still needed to handle money, plan compensation, and manage relationships with carriers. The AI takes over the boring parts so people can do more valuable work.
One example Petrey shares is how AI handles two billing types: direct bill and agency bill. In agency bill scenarios, where agencies collect money before paying carriers, the AI can calculate how long agencies can keep cash without missing payments. That kind of insight adds real value beyond simple bookkeeping.
Even smaller agencies with just a few dozen staff are seeing benefits as the AI gets smarter over time. Petrey notes the shift in focus from basic administration to cash flow questions is happening fast—like on a quarterly basis.
In short, AI is making insurance accounting easier, cheaper, and more accurate. While the human touch remains important, the technology is giving agencies the tools to work smarter and grow their businesses. As Petrey puts it, spending money on work that actually makes money beats paying for endless administrative tasks every time.