Insurance Premium Billing Software Development

Annual and instalment payment plan configuration by product line and distribution channel, so a motor policy can have a different instalment structure from a home contents policy written through the same system. Instalment schedule generation at policy inception showing payment dates, instalment amounts, and any interest or administration charge applied to the instalment facility. When a policyholder makes a mid-term change, the instalment plan recalculates automatically: additional premium is spread across remaining instalments or collected as a one-off depending on the configured plan rules, and return premium on coverage reduction or cancellation is applied as a credit against the next instalment or refunded. Direct debit setup and mandate management through GoCardless or Stripe, with mandate confirmation sent to the policyholder at the point of plan setup.

Automated direct debit collection on instalment due dates with no manual intervention required. Failed collection triggers a configurable retry schedule -- for example, a first retry three days after the failed collection and a second retry five days after that -- before the payment is marked as failed and the cancellation workflow begins. Policyholder notification of a failed collection is sent automatically with a link to pay the outstanding instalment by card, giving policyholders the opportunity to self-cure before the cancellation process starts. Card payment is accepted for one-off instalments, MTA additional premiums, and arrears payments. Payment confirmation with receipt goes to the policyholder. Payment method update allows a policyholder to change their direct debit account without requiring a call to the contact centre.

Additional premium billing on endorsements: the amount due is calculated from the MTA rating, presented to the agent or policyholder for confirmation before the change is applied, and then collected either immediately by card or spread across remaining instalments depending on the plan configuration. Return premium on coverage reduction or cancellation is calculated, reviewed, and processed back to the original payment method -- direct debit refund to the bank account or card refund to the original card. Pro-rata and short-rate cancellation calculations are configurable per product line, so a commercial policy cancelled mid-term applies the correct calculation rather than a blanket pro-rata. The adjustment, collection method, and outcome are recorded against the policy billing record for reconciliation.

Automated cancellation workflow triggered by a confirmed failed payment: the notice period begins from the date of the failed collection, the regulatory notice letter is generated and dispatched to the policyholder by the method required for the product and jurisdiction, and the policy is cancelled automatically when the notice period expires if payment is not received. Reinstatement workflow handles the case where payment is received during the notice period -- the cancellation is stopped, the policy is reinstated, and the policyholder receives confirmation. Notice period length is configured per product line and per jurisdiction, so a UK motor policy observes a different notice period from a US personal lines policy. Every step in the cancellation process -- notice generated, notice dispatched, payment received or not received, cancellation effected or cancelled -- is recorded in a full audit trail.

Integration with premium finance providers -- Close Brothers Premium Finance, Premium Credit, and Funding Circle -- for policyholders who opt to finance their annual premium rather than pay it in full or in standard instalments. Finance agreement generation from the policy and premium data, with e-signature collection from the policyholder before the agreement is finalised. Lender payment received and applied to the policy billing record so the policy shows as paid in full from the insurer's perspective. Lender cancellation notice handling manages the case where a policyholder defaults on their finance agreement: the lender notifies the cancellation, the system initiates the policy cancellation workflow, and the return premium is calculated and remitted to the lender. Finance interest and cost of credit disclosure is included in the billing documentation as required by consumer credit regulation.

Daily reconciliation of collected payments against the expected instalment schedule, surfacing any discrepancy between what was due and what was received before it becomes an aged debt. Aged AR report by policyholder and by payment status shows outstanding amounts, days overdue, and which stage of the collection or cancellation process each account is at. Failed payment rate by product and by collection method identifies whether a failure rate problem is specific to a product, a distribution channel, or a payment method. Cancellation for non-payment rate with period-on-period trend analysis shows whether the rate is improving or deteriorating, useful for pricing and product management decisions. Cash flow reporting with expected collection amounts by date range supports treasury planning with a forward view of expected income from scheduled direct debit collections.