No one uses checks anymore. Are you?
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.
The problem with checks.
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.
Reinventing the claims payment experience.
The answer customers and insurers have been waiting for is here. Payment portal solutions like CommercePayments® PreferPay® provide single and multi-party electronic claims payments while giving insureds faster access to their funds.
Convenient payment optionsYour insureds get paid the way they want to: Push-to-debit, direct deposit or traditional check.
Faster paymentNo waiting on the mail. No trips to the bank. Push-to-debit disbursements can happen in as little as 30 minutes.
Improved experienceAutomated, mobile-friendly portal fits the on-the-go lifestyle of more and more consumers.
Benefits to insurers.
Lower LAE & indemnity spendDecrease check costs of paper, postage, escheatment and 1099 processing. Insurers can also reduce rental days and additional living expenses by providing faster cash in hand.
Faster paymentGet money to your insured faster by cutting out the time it takes to issue, mail and deposit checks.
Keep adjusters happyYour adjusters issue payments in your system the way they always have. Plus, insured’s payment questions come to us, not you.
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.