Agency bill vs direct bill
Here is how each model works, what it costs, and how to pay for it.
What is agency bill?
On agency bill, the agency issues the invoice, collects premium from the insured, retains its commission, and remits the net premium to the carrier. The agency owns the money movement — and the reconciliation and trust accounting that come with it.
What is direct bill?
On direct bill, the carrier invoices the insured and collects the premium directly, then pays commission back to the agency. Collections and credit risk move to the carrier, along with the interchange cost of card payments.
| Agency bill | Direct bill | |
|---|---|---|
| Who invoices the insured | The agency | The carrier |
| Who collects the money | The agency | The carrier |
| Who carries credit risk | The agency | The carrier |
| Commission handling | Netted out before remittance | Paid back to the agency |
| Reconciliation burden | Heavier — agency-side ledger | Lighter for the agency |
| Who typically pays the processing fee | The insured, as a convenience fee | The carrier absorbs interchange |
| Best for | Commercial, surplus lines, MGA business | Personal lines and high-volume books |
Trade-offs at a glance
Agency bill
- You own the billing relationship
- Faster premium finance and installment options
- Convenience fees keep processing cost near zero
- More reconciliation work
- Trust accounting obligations
- Credit risk sits with the agency
Direct bill
- No collections work for the agency
- No trust accounting exposure
- Carrier handles servicing and reminders
- Less visibility into insured payment status
- Commission timing depends on the carrier
- Carrier absorbs interchange cost
Whichever way you bill, we have a workflow for it.
Pick your path and see the platform built for it.