Digital claims payments are on the way. Are you ready?
Digital claims payments are on the way. Are you ready?
Like death and taxes, getting a claims payment from an insurance company in the form of a check in the mail has been something insureds could count on for decades. Few things in life have been as predictable or expected as this aging form of disbursement.
But checks are on their way out and they’re making a hasty exit. Some forecasters predict that check use will be close to zero by the year 2021.1 So where does that leave the insurance industry when it comes to paying claims in a way that consumers want?
Payment trends are going mobile.
The movement of financial transactions from the physical to the digital realm is relentless – with new industries joining in every day. And customers love it. In fact, the global mobile payments market is expected to grow approximately USD $3.3 Trillion by 2023 – a 32% Compound Annual Growth Rate from 2017.2 With these trends in mind, how can insurers keep from being left behind?
Payment portals deliver convenience and choice.
Fortunately, there is an answer for insurance carriers. Solutions like the CommerceVantage® PreferPay™ give insureds a choice of how they’d like to receive their payments – even by traditional checks if they wish. Here are some of the options insureds can choose from in a payment portal:
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Push-to-Debit
A simple, less expensive way to pay claims without the hassle or cost of issuing a check or obtaining bank account information. With Push-to-Debit, funds become accessible in as little as 30 minutes. -
Direct Deposit
Customers receive funds directly into their bank account within 2-3 business days. -
Check
Customers who prefer a traditional check can still choose to have their payment mailed to their home address. -
CommerceVantage® PreferPay™
One common misconception with payment portals is that insurers have to move all of their treasury services to the bank or institution offering the service. With CommerceVantage® PreferPay™ this is simply not true. All the payment portal administrator needs is a payment file to disburse the funds.
Finally, PreferPay™ doesn’t require adjusters to do much differently than what they’re doing now. Once an insurance client is set up on the portal, adjusters work with their insureds to provide a secure, one-time-use login to access the payment portal. Insureds select how they want to be paid and customer data is securely housed at the financial institution. Plus, it comes white-labeled – allowing clients to customize design elements to fit their brand.
Click here for more information on claims payments solutions and why this convenient, low-cost approach is on its way to becoming the new corporate standard.
