Federato Billing and Payments: real-time financial control built into the full policy lifecycle

Today, we’re excited to introduce Billing and Payments, built natively within Federato. It’s a step forward for insurers that keeps billing aligned with every policy change, preserving financial integrity and strengthening trust across the insurance ecosystem.

Over the years, insurers have described living with the consequences of the same pattern: the Old Core software vendors acquire a solution, bolt it on, and call it “unified.” Years of stitching together policy administration, billing, and adjacent systems, each with different schemas through fragile APIs create three persistent failures in billing operations: 

• Delays in product launches On Old Core systems, every new insurance product or program is a months-long IT project, stalling momentum. Each product exists on its own data schema, preventing billing from reusing existing configurations. Without a shared foundation between policy administration and billing, every new billing rule must be carefully defined and rigorously tested to ensure consistency across both systems.
• Financial reconciliation when policies are live Once a policy is bound, mid-term changes often require reconciliation across billing and policy administration systems. Without a unified data foundation, even routine updates such as endorsements can result in downstream billing operating on outdated or incomplete policy data. These gaps lead to invoice and commission inaccuracies. No single error is catastrophic, but they accumulate over time and impact the top line.‍
• Broken trust across the ecosystem The direct bill versus agency bill dynamic compounds the challenge. When billing data fails to propagate promptly between carriers, MGAs, and brokers, commission payouts and remittances are delayed. Over time, these delays erode confidence first in the numbers, then in the relationships that depend on them.

“We believed insurance deserved better than decades of billing workarounds. So we broke down every workflow and every interaction between partners and built what insurers were asking for from the ground up.”  -Will Ross, Co-Founder and CEO

Billing, built for how insurance actually works

For years, Federato has been building, learning, and refining billing solutions alongside insurers who felt the pains from Old Core systems every day. 

The solution that emerged was clear: Billing and Payments must be built as a native part of the policy lifecycle, not bolted on through a 3rd party acquisition. That's exactly what we deliver today: a billing experience built to adapt to every nuance of an insurer’s workflow, unlocking a level of speed and reliability that hasn't been possible before. With the Federato platform, insurers can now: 

Accelerate growth

Launch new products in days, not months. Because all configuration happens in one place on a shared schema, billing is ready when your product is. Changes propagate automatically to policies, so teams move forward with confidence that billing will work exactly as expected:

• Installment schedules, jurisdiction-specific taxes, commissions, and minimum earned premium are defined in an intuitive environment and cascade accurately to live policies
• Common configurations can be reused across products, programs, and lines of business with user-driven modifications for maximum flexibility 

Ensure financial accuracy

Old Core systems require every policy change to trigger a carefully timed data transfer before billing can catch up, Federato flips that model. With a shared data foundation for policy and billing a single change carries through the whole system by default, seamlessly handling the bi-directional flow of money:

• Endorsements and renewals automatically trigger billing updates and cancellations compute minimum earned premium and commission clawbacks
• Every transaction is logged in real-time in purpose-built sub-ledgers, so finance teams are working from a real picture, not reconstructing one at month-end close

Strengthen partner and policyholder relationships

Whether a program uses direct bill or agency/broker bill, Federato coordinates the flow of funds globally between carriers, brokers, and policyholders. All parties work off of one source of truth with a consistent, transparent payment experience: 

• Policyholders receive invoices digitally and can pay easily via ACH, credit card, or premium financing on the Policyholder Portal
• Automated notifications alert policyholders and insurers to missed payments, helping prevent cancellations, while long-term delinquencies can trigger automatic policy cancellations in line with regulations
• Commissions are calculated and allocated with funds available as fast as same day enhancing trust between brokers and carriers

Turn billing into a competitive edge across the full policy lifecycle 

Federato Billing and Payments goes beyond financial execution. Because billing is native to the policy lifecycle, it becomes a continuous feedback loop into underwriting surfacing patterns that were previously invisible. 

Insights such as which segments carry higher delinquency rates and which distribution channels drive the most cancellations provide underwriting leadership with actionable context to fine-tune product offerings and better align them with the right target market. 

A truly policy lifecycle native system unlocks meaningful value across the entire policy lifecycle. Don’t get lost in the promises of the Old Core; whether their billing is external or embedded, it’s still a bolted on headache. Replace fragmented policy administration systems with a single native foundation, and judge the difference for yourself.

Request a demo to see Federato Billing and Payments in action.