Applied Epic Best Practices

Mastering Applied Epic’s Retention Report and Why It’s Essential for Insurance Agencies

Studies show that it costs insurance agencies 7-9 times more to attract new clients than it does to just keep existing clients. Retaining a steady collection of clients is vital to agencies. In addition, when paired with rounding out current accounts, retaining clients is a great way to reduce acquisition costs and increase revenue.

To help you get a firm grasp on your insurance agency’s retention rate, let’s talk about how to measure retention and how you can effectively run the Retention Report in Applied Epic

The Formula for Measuring Retention

Let’s begin our deep dive by talking about what retention means. Retention is the percentage of clients or policies at the beginning of a time period—typically a year—that are kept at the end of that time period. It’s traditionally measured by taking the number at the end, subtracting the number of new clients, and dividing by the number at the beginning. Here’s what that formula looks like. 

Traditional Formula:
[(Ce – Cn) ÷ Cb] x 100

Ce is the # of clients at the end of the time period
Cn is the # of new clients during the time period
Cb is the # of clients at the beginning of the time period

Retention at the Client Level

Measuring retention at the client level can come with its set of challenges. First of all, tracking at the account level and not the policy level only shows a loss when the final policy cancels or nonrenews. There is no method for measuring premium loss as it happens in order to “stop the bleeding.”

Also, measuring client retention requires excellent maintenance of Client Accounts in Applied Epic. While you could bypass the Active/Inactive status and the Insured/Prospect types by using the Condition of Policies criteria on the Client List Report, an accurate Date Entered is essential. Unfortunately, most agencies find it difficult to achieve this, especially if they are entering Prospects long before they actually become Insured. 

Finally, measuring retention at the client level cannot be done through a single report. Here’s what you will need:

  • A Client list of all accounts entered before the start of the timeframe
  • A Client list of all new accounts entered during the timeframe
  • A Client list of all accounts entered on or before the last date of the timeframe.

If using the Client List is not an option, there is another way to measure your client retention from the policy level with some Excel skills. 

First, run a policy list/Book of Business for policies in force at the start of the time frame (effective Open-start day, expiration day after start-Open). Generate the report in Excel and remove duplicates for Account Lookup Code. Do the same for the last day of the time frame and new business during the time frame. If you don’t trust your data, do a VLOOKUP or pivot table to compare the start list with the end list to make sure that there are no missed expirations or starting policies that just haven’t been entered yet. 

Overall, to harness valuable insights about retention, you need to conduct a lot of manual work. But luckily, Applied Epic users have a built-in retention report that makes the process a whole lot easier!

Applied Epic's Built-In Retention Report

Applied features a handy Retention Report – Multi-Layouts* located in the main Policy section of Reports/Marketing. This report is part of the newer Report Pack. If you do not see it in your database, contact Applied and ask for it. They typically load it the same day as your request.

This report tracks retention by policy and is useful for seeing the losses as they occur, rather than waiting for a client to fully leave. It uses a similar formula as above, but instead of taking into account new policies, it measures those that are lost.

Epic’s Formula:

[(Total Policies – Lost Policies) ÷ Total Policies] x 100
Epic calculates this with both # of policies and estimated premium.

This report takes into consideration all policies that expired during the specified time frame and subtracts anything that is counted as Lost Business. The criteria for running this report are:

  • Expiration Date: -365 days through Today (or use a Fixed Date Range)
  • Policy Status: Exclude any quoting or error statuses, like NWQ, MKT, ECU. You are only looking for actual written policies that were either renewed or cancelled.

Out of the box, Epic only considers CAN – Cancelled – General, CIR – Cancelled – Insured’s Request, and CNP – Cancelled – Nonpay. If your agency uses other cancellation codes like NON – Nonrenewed by Carrier or CSD – Cancelled – Sold, then the report layouts must be updated (see below). Note: CRW – Cancelled – Rewritten to a New Carrier is not Lost Business and should not be counted as such.

The report comes with several versions of a Summary and Detailed layout, much like the Book of Business – Billed/Est – Multi-Layouts* report. Major sorts include Detail and Summary by Producer, PPE, and Branch. Like all reports in Epic, copy the layouts and create Major Sorts for Account Managers or any other options (Policy Type, etc).

A Word About Configuration

If you choose to use other Cancelled statuses, consider acknowledging controllable vs. uncontrollable losses. For example, clients who are deceased or closed their business are uncontrollable losses. Knowing these numbers and reasons helps inform your decisions. 

Also, ensure your cancellation statuses are clear enough that your staff is not confused about when to use each one. Cancelled – General gives no information about why the policy was lost. Avoid adding too many statuses to prevent decision fatigue. Create a cheat sheet of when to use each cancelled status.

Cancellation Workflow Considerations for a Retention Report

When cancelling a policy mid-term, make sure to cancel only the current term and error out any “renewal” (that will never be an in-force policy) that may have downloaded or renewed in Epic prior to the cancellation request/notice.

When cancelling a policy at renewal, make sure to renew the policy first and Cancel or Not Issue on the renewal term (cancel flat). Keep the expiring term as in-force with a valid status, since that policy was in effect for the whole term.

Never have a cancellation status on both the expiring term and the renewal. This will duplicate your lost business numbers and affect your calculated retention rate.

Keep Your Data Clean!

It’s always important to have good workflows and to monitor your data regularly. Review the Lost Business Report monthly and consider, was the policy really lost or was it rewritten to a new carrier? Review the Missed Expirations Report monthly: Are there policies that cancelled at renewal but were allowed to just expire? Create a “Cancelled but Status is not Updated” Report, then run a list of policies where the SSR Action = Cancel but status is not CAN, CIR, CNP, CRW, NON, etc.

Understanding and Updating Your Retention Report

IMPORTANT NOTE: ALWAYS copy to your My Reports before adjusting the layout! 

Totals and formulas are calculated using Underlying Math section at the bottom of each Major Sort and at the Report Totals and, as mentioned above, only contains subtotals of policies with CAN, CIR, and CNP statuses. You will need to add NON and any other lost business statuses used by your agency.

Applied Epic's Retention Report, Lost Business Snapshot

The Retention calculation section contains the following totals/formulas:

  • Total Premium/Policies are counted from the Detail section. This is a “normal” subtotal that is typical of Epic Reports.
  • Total Lost Premium/Policies – a Formula that is calculated from the Underlying Math section – adds up each Total field.
  • Total Less Lost Premium/Policies – a Formula that subtracts the Lost number from the Total number (this is the number that is retained).
  • Premium Retention % – a Formula that divides the Total Less Lost Premium/Policies by the original Total and multiplies by 100.
Applied Epic's Retention Report's Calculation

Don’t reinvent the wheel. Just copy and paste fields, and then update formulas as needed. Use the Field Properties to adjust font, formulas, and so forth.

Applied Epic's Retention Report Field Properties

Copy/Paste the fields in the Underlying Math section (use CAN) and adjust the criteria to other status codes.

Applied Epic's Retention Reports Formula Editor

Use the dropdown next to Fields to quickly locate Total Fields and Formula Fields (clicking on the field in the dropdown will highlight that field in the canvas).

Applied Epic's Retention Report, Total Fields

Use the Formula Builder to add Total and Formula fields to each formula.

Applied Epic's Retention Report Formula Builder for Script Modification
Applied Epic's Retention Report Formula Controls Description

Make the changes on one Detail layout first, then copy the layout and update the Major Sort. This is much easier than trying to update the formulas in every layout.

Summary layouts have the same concepts/formulas, they are just arranged differently. Update the formulas for one Summary and one Detail, and then copy from those.


Tracking your agency’s retention is a vital tool in your arsenal. It helps you keep tabs on trends and identify any issues with your clients or carriers. Measuring your retention rate is a complicated process no matter how you decide to measure it, but it’s worth it.

If you need assistance with the Retention Report or any other reports, be sure to check out our Applied Epic resources on our website and our YouTube channel. We have blogs, prerecorded webinars, and Consulting Corner webisodes available.

Kite Technology also offers a variety of Consulting Services, from migrations and training, to optimization, bookkeeping, and much more. Interested in expert Applied Epic support? Schedule a time to talk with us!

Jenny Honican

Jenny Honican

Agency Consultant
Kite Technology Group

Driving Your Agency’s Success with Performance Auditing

The term “audit” has long been associated with skepticism and apprehension, and performance audits in insurance agencies are no exception. However, despite the initial unease they may provoke, performance audits can be invaluable for your agency’s growth and success. The key lies in understanding why these audits are necessary and how to effectively carry out this seemingly daunting task. In this article, we aim to shed light on the benefits and provide you with some strategies on conducting performance audits that yield meaningful insights. 

Benefits of Performance Audits

Avoid Errors & Omissions

When your agency migrated to your agency management system, whether it was Applied Epic, AMS360, or another, you likely implemented workflows and established expectations that were use in training your staff. These workflows and expectations have not only served as a foundation for your existing team but also continue to be utilized during the onboarding process for new employees. However, It’s human nature to start finding shortcuts and workarounds for tasks that we perform daily. Sometimes, these lead to bad habits and consequently an opportunity for an error & omission. A critical mistake agencies often make is solely relying on training without actively verifying if staff members are adhering to established workflows. The best way to determine if your team is following those established workflows is to audit files.  

Evaluate Effectiveness of Workflows & Identify Necessary Changes

Audits are also a great way to evaluate if your Applied Epic or AMS360 workflows are working for your agency or if they need to be amended. If you audit files and find that certain portions of workflows aren’t being followed, it raises the question of whether the issue lies in the clarity of the workflows themselves or their effectiveness. Is it possible that the workflows have become unclear over time, or that they no longer align with the agency’s operational needs due to the adoption of new technologies or integrations? While we don’t recommend frequent changes, we do encourage that agencies review questions and concerns with workflows and update them when necessary.  

Identify Departments that Need Additional Resources

Auditing can also identify areas of the agency that may need additional resources.  For example, if you review workloads and find that one department has written a substantial amount of new business in the past 12 months, you may also find it necessary to hire an additional resource to help support those accounts or shift a portion of your book to a carrier service center.  

Best Practices for Conducting Audits in Your Agency

Now that we’ve discussed some of the more important reasons that your agency should conduct performance auditing, let’s delve into some best practices that can ensure the effectiveness of these audits.

Be Transparent with Your Staff

So how do you implement audits without creating that environment of fear and hostility toward the process? We encourage the process to be implemented with transparency. Clearly identify what is being audited and the scale on which they will be evaluated. Explain to your staff that the process isn’t just to find out what someone is doing wrong but to also find what is being done right. What can the agency do better for them? The results will foster an environment where staff wants to do well and more importantly give them an opportunity invest in their own development.  

Provide Additional Resources and Training 

Did you know that based on a recent survey 86% of millennials shared that they could be prevented from leaving their current position if training and development were offered by their employer? That’s right, your staff wants to feel like you invest in them and encourage them to be better versions of themselves. Make the audit process one that is positive and that also gives back. When you find that someone has underperformed give them the resources to fix the problem. This can be done through written documentation, recorded documentation, or even live support and training.  

Outsource your Performance Audits

While agencies can perform their own performance audits, it’s often challenging to allocate the resources and time for this task – that’s where outsourcing comes in. By outsourcing your performance audits, you can tap into the expertise and specialized knowledge of industry professionals who have in-depth experience with insurance and the agency management system you are using. They bring the necessary skills, tools, and processes to conduct comprehensive audits, ensuring accuracy and thoroughness.

Another benefit of outsourcing your performance audits is the objectivity that it brings to the process. External auditors bring an objective perspective to the process, as they are not directly involved in day-to-day operations. That objectivity enables them to assess workflows and performance without bias, identifying potential gaps or areas for improvement that may have been overlooked internally.

How Kite Technology Can Help

KiteTech has helped countless agencies over the years implement auditing programs, resulting in significant improvements in data reporting, errors and omissions claims, and employee morale.

To learn more about our auditing services, Applied Epic agencies, click here and AMS360 agencies, click here. If your agency would like assistance in developing an auditing program or configuring reports to support your processes, contact us today to schedule a conversation. We are here to help!

Laura Whaley

Laura Whaley

Agency Consultant
Kite Technology Group

Bookkeeping in Applied Epic: 10 Best Practices for Accurate Financial Reporting

Accurate bookkeeping in Applied Epic is an area where many agencies struggle and lack confidence in the integrity of their accounting data and financial reports. Applied Epic has a well-designed accounting system that captures all your agency’s financial data and organizes it into various financial reports. These reports are critical analytical tools that can help management understand the financial health of your agency, as well as assist in making financial decisions about agency growth and process improvements. In this article, we will explore 10 best practices for bookkeeping in Applied Epic to help you ensure accurate financial data.

Best Practices for Accurate Bookkeeping in Epic

1. Record Every Financial Transaction with Receipts and Disbursements

Accurate financial data involves keeping track of every single financial transaction in your agency. Knowing how much you earn and how much money you spend is important for getting an idea of your actual income and expenses. Entering your receipts and disbursements and verifying them on your bank statement or your online banking portal is a critical step to ensuring that every transaction is recorded in Epic and reported on your financial statements.

2. Record Payroll Entries

Another important step of bookkeeping is recording the payroll. Whether you calculate, record and submit your agency payroll on your own or use an outsourced payroll service, entering your payroll data into Epic ensures that all payroll transactions are recorded on your financial statements accurately.

3. Reconcile Direct Bill Commissions

Reconciling your direct bill policy commissions is another critical step in accurate financial reporting. For direct bill commissions, you can download, import, or manually reconcile your commissions and once reconciled, tie them to your commission deposits to ensure that they will be reported on your income statement correctly.

4. Reconcile Premium Payables

There are multiple steps necessary for the accurate recording of your premium payable/agency bill policies in Epic. The accurate invoicing of the policies to your clients, recording the receipt of their payment, reconciling the premium payable to the company or broker, and disbursing payment of the premium payable to the carrier are the steps necessary to properly record these transactions in Epic.

5. Record Direct Bill Sweeps

Many agencies offer the courtesy of collecting policy payments for their clients and paying the carrier on their behalf. These are called “sweeps”. Making sure the client’s payment is receipted to their account and the payment to the carrier is recorded as a Premium Advance will accurately capture these transactions in Epic and keep the premium bank account balance and accounts receivable on the balance sheet accurate.

6. Reconcile and Pay Producer and Broker Commissions

Whether you use the Pr/Br Reconciliation feature in Epic or reconcile and review your producer/broker payables manually, you need accurate Pr/Br commission data in your system so you can pay them commissions that are owed. Verifying that commission agreements are set up and attached to policies in Epic will ensure that your producers and brokers are paid accurately and timely every month.

7. Perform Monthly Bank Reconciliations

Reconciling your bank accounts monthly is a critical bookkeeping step that ensures that all financial transactions are recorded in Epic and that your bank balance in Epic ties to the bank account. This reconciliation will ensure that all financial data is correctly reported on your financial statements.

8. Run Month End Accounting Reports

In Epic, there are several month end accounting reports that you can run and review before closing your month. These reports will help you determine if there are any incomplete transactions and ensure that you have reconciled all commissions received and that your receivables and payables tie to your General Ledger.

9. Analyze General Ledger Account Balances Using the Status of Accounts Report

The Status of Accounts report is a valuable tool to review the debit and credit transactions in all your General Ledger accounts. Use this report to analyze the detail of your balance sheet and income statement balances when balances look incorrect. Once you determine what caused the errors in your balances, you can further complete transactions and/or enter a journal entry to correct balances.

10. Review of Final Income Statement and Balance Sheet

Once you determine that your financial reports and data are complete and accurate, the final monthly bookkeeping step is to close the month in Epic. Once you close the month, you are now ready to submit your final monthly financial reports to your CPA if required. Management will also now have the tools they need to analyze the agency’s financial data to plan for future financial decisions.


Proper bookkeeping in Applied Epic is essential for agency management to understand in order to be able to make informed financial decisions. Without knowing the details of your agency’s finances, it’s difficult to evaluate opportunities for growth and investment. Monthly and yearly financial statements can give you a lot of information about your agency and help you pinpoint areas for improvement. They are also vital for your CPA to obtain for accurate and timely tax reporting.

Accounting and bookkeeping in Epic can be very overwhelming for an agency when they don’t trust the accuracy of their financial data. If your agency needs help with accounting and bookkeeping in Epic, the KiteTech Agency Consulting team is here to help! We have extensive experience in Applied Epic accounting and we are ready to provide customized solutions that meet your agency’s unique needs. We can assist your agency with accounting optimization, forensic accounting and cleanup, and even outsourced bookkeeping services. Contact us today for more information!

Buffy Johnson

Buffy Johnson

Agency Consultant
Kite Technology Group

adam atwell

Adam Atwell

Cloud solutions architect

Adam is passionate about consulting with organizations across the country to help them develop and execute a cloud adoption strategy that meets their business needs and future objectives. Adam oversees and manages our company strategy for Microsoft 365 adoption and is responsible for future growth and development inside Microsoft 365 and other cloud technologies.