Carriers have invested heavily in creating new digital customer experience but making claims payments often still ends in a “your check is in the mail” notification. Digital payment alternatives, first developed for industries like retail, are now finding their way into insurance.
Cost savings is the primary driver of growing carrier interest, as paper check processing is significantly more expensive than digital payments. Digital experience is also being defined by other industries and mailing physical checks does not align with new consumer expectations. Insurers are in turn shifting focus towards providing policyholders with a fully digital experience as well as speed and convenience of payments options.
Developing a digital claims payment strategy requires an assessment of internal requirements and processes. Regional demographics will influence the solutions needed as well as the pace of implementation. Newer solutions may not address all desired capabilities, and a successful transformation may depend on adjusting existing payment processes and enterprise architecture.
As digital payments in insurance continues to trend up, the vendor market has grown to meet nearly any capability insurers are seeking. Yet insurance expertise in areas like distribution and claims payments are among the most important differentiators to consider. Prominent providers serving the insurance industry include Bankable, Checkbook, Dream Payments, Fiserv, Hyperwallet, Ingo Money, InsurPAY, One Inc., Paysurance, PayPilot, VPay, and Commerce Bank.
Ultimately, waiting for current trends in digital claims payments to pass may not be the most optimal way for insurers to future-proof. Novarica’s latest brief, Digital Claims Payments: Overview and Prominent Solution Providers, discusses the business drivers and benefits of new payment possibilities as well as challenges to consider, and provides an overview of prominent providers in the space.
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