Billing and Payments

Billing aligned with every policy change

With billing and payments built into the policy lifecycle, policy changes flow straight to the books, giving all parties confidence in every transaction.

Streamlined
billing setup

Set up billing rules, including installments, taxes, commissions, fees, and minimum earned premium with reusable templates across products so new products launch in days, not months.

" One of the things that I think is very unique about Federato and the culture there is they don't offer just a simple out-of-the-box solution. They offer a solution to your thinking, and then they match that to their process, and they're able to bring real innovation to your business."

Rod Harden, President of Claims and Operations Velocity Risk

Trust built through every transaction

Whether direct-billed or agent-billed, Federato automatically reconciles payments and commission disbursements in real time so carriers, producers, and policyholders are always working from the same numbers.

Seamless payments from invoice to resolution

Policyholders view digital invoices and pay via ACH, credit card, or premium financing in the Policyholder Portal. Automated notifications and configurable grace periods help prevent avoidable cancellations, with compliant cancellation workflows when delinquency persists.

Nearly

69%

of insurance leaders face bottlenecks managing delinquencies and aging receivables

Capgemini World Report Series, 2025

Accurate financial reporting, without manual reconciliation

Every transaction is logged in real time in purpose-built sub-ledgers, so your finance team can run detailed cash receipts and bordereaux reporting from a complete, current picture, not track down discrepancies at close.

“We want to go fast. Federato has that same type of philosophy to showing and proving to the market that you can do it better and faster at the same time, which are usually not two things that go hand in hand in technology, but whenever you have an AI driven platform, it really allows everything to move a little bit quicker and add more value to the customers at the end of the day."

Craig Manning, VP Digital Products, Mission

Frequently asked questions

Can Federato manage direct bill and agency bill models for insurers and MGAs?

Yes. Federato supports direct bill and agency bill models for carriers, MGAs, and MGAAs. It automatically calculates premiums, taxes, fees, and commissions, remitting them to carriers or distributing commissions to partners. All billing activities are seamless for policyholders, ensuring accurate collections and a frictionless policy lifecycle experience.

How does Federato handle mid-term policy changes like endorsements, cancellations, and renewals?

Federato recalculates premiums, taxes, fees, and commissions automatically for every policy change whether its endorsements, cancellations, renewals, or reinstatements. Installment schedules adjust in real time, return premium is computed where applicable, and all activity is logged with a full audit trail, reducing errors and manual reconciliation across accounting and finance.

How does Federato Billing & Payments provide insights to improve underwriting and portfolio management?

Because Federato spans across the full policy lifecycle, data from billing becomes a feedback loop into underwriting. 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.

Can you use Federato with existing payment rails?

Yes. Federato Billing connects via API with existing payment processors. Regardless of using payments on Federato or externally, billing calculations, commissions, and collections remain accurate.