What is the difference between Agency Bill and Direct Bill?
In the insurance industry, there are two main methods of billing: Agency Bill and Direct Bill.
Agency Bill involves the insurance agency billing the client for the policy premium and receiving the total amount upfront. This gives more control and commission upfront but requires more work for the agent at the beginning.
Direct Bill involves the insurance carrier billing the client directly for the policy premium, with the agency receiving its commission at a later date. While Direct Bill is more streamlined, if an insured doesn't make payment, the policy will not go through, and the agent will not receive a commission.
In E&S, most business is done through Agency Bill, which is usually determined by the carrier. Pathpoint gives agents a choice between a Agency Bill (PathPay Agency) and Direct Bill (PathPay Insured). To learn more about PathPay, click here.
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