New York, New York, Feb. 12, 2025- Today, Functional Finance announces a partnership with PolicyFly to transform how Managing General Agents (MGAs) and specialty insurers manage operations to offer billing, payments, and accounting natively within PolicyFly.

“Specialty insurers often face challenges balancing complex policy workflows with financial operations like reconciliation, payment processing, and reporting,” said Cory Crosland, CEO of PolicyFly. “By combining our expertise in policy workflows with Functional Finance’s automation capabilities, we’re eliminating inefficiencies and empowering insurers to focus on growth and customer satisfaction.”

PolicyFly’s platform has earned a reputation as a reliable solution for policy administration, enabling insurers to manage everything from submission intake and underwriting to endorsements, cancellations, reinstatements, and reporting. By streamlining these processes, PolicyFly helps insurers reduce time-to-quote and better manage submission volumes, key challenges in the specialty market.

Functional Finance complements PolicyFly’s capabilities by automating financial workflows that often fall between policy administration systems and accounting. Tasks like reconciliation, payment categorization, and cash transfers are traditionally labor-intensive and prone to errors. Functional Finance eliminates these challenges, providing real-time reconciliation and financial clarity.

“Finance operations in the insurance industry are often still handled through spreadsheets and manual work,” said Rashmi Melgiri, CEO of Functional Finance. “You know what the premium is, but then comes the question: how do you collect it? How do you reconcile it? That’s where Functional Finance steps in, automating these processes so insurers don’t have to worry about it.”

This partnership is particularly impactful for insurers with complex distribution networks or diverse billing models. MGAs and carriers often juggle agency bill and direct bill, ACH and credit card payments, plus the occasional paper check, leading to reconciliation nightmares. Functional Finance simplifies this by integrating seamlessly with existing systems and providing accurate, real-time reporting.

The collaboration also addresses a key industry debate: whether insurers should rely on all-in-one systems or specialized, best-in-class solutions. While some policy admin systems attempt to handle accounting and billing, these modules are often too limited to meet the needs of growing insurers.

“Organizations that are looking to be excellent at what they do are always going to get hurt in the long run if they’re using a one-size-fits-all vendor,” said Joe Russo, Head of Sales at Functional Finance. “Nobody out there is ever going to be the best at everything. It’s just not possible. You have to specialize to be the best.”

As insurers grow, their needs evolve, and many legacy systems can’t keep up. The partnership ensures insurers can adapt to new challenges without introducing inefficiencies. PolicyFly and Functional Finance are designed to evolve alongside their customers, providing scalability and addressing new complexities as they arise.

This partnership is already transforming operations for specialty insurers, helping them reduce delays, improve accuracy, and operate more efficiently. By automating submission intake, underwriting, billing, and reconciliation, PolicyFly and Functional Finance are setting a new standard for what insurers can expect from their technology partners.

“At the heart of this collaboration is a shared commitment to solving real problems for our customers,” Crosland said. “We’re not just making processes easier—we’re helping insurers focus on what matters most: serving their customers and growing their business.”

About Functional Finance

Functional Finance provides financial operations software serving tech-forward insurance companies. The platform is an API-driven embedded solution to help operators automate and own all aspects of money flow from checkout and financing through payables and refunds. With a founding team, including the co-founder of CoverWallet, Rashmi Melgiri, the company was founded to provide solutions specifically developed for operators of businesses in the insurance industry through an integrated insurance-specific platform. Functional Finance is SOC 2 Type II certified. To learn more, visit functionalfi.com.

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Media Contact:
Steven Patrick
Mid-Century Marketing Co. // Functional Finance
steven.patrick@mid-century-marketing.com