Stop for a moment and think of all the ways checks have been replaced with electronic or digital transactions. No doubt payroll, retail, bills and gifts to friends/family come to mind. But what about insurance claims? Paper checks have long been the traditional form of paying insurance claims – whether it be directly to the insured, auto repair shop or construction contractor. But as our world becomes more digitally focused, insurers need to keep pace with these growing trends and not get left behind.
Checks can cost insurance carriers between $5 and $12* to issue – easy enough motivation for a new solution when the claim requires only one insured be paid. But when you consider a single claim might require multiple checks, it’s easy to see how the fees and processing costs quickly add up.
But that’s not all. Paper checks are subject to theft, fraud and loss during delivery. But the biggest factor, as stated above, is that we’re becoming used to, and prefer, the security and convenience of digital payments. So, not only do checks cost carriers more, they’re less convenient for the consumer.
The answer customers and insurers have been waiting for is here. Payment portal solutions like CommercePayments™ Claims Payments provide single and multi-party electronic claims payments while giving insureds faster access to their funds.
Finally, insurers don’t have to move all of their treasury services to the bank or institution offering the service. 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.
Read more about why it’s time to say goodbye to costly paper checks and give your customers the convenience they’re craving.