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Adapting and Thriving in the Age of Digital-first Payments

Find out how VPay can help you stay ahead of the turbocharged payment trends and expectations that define our “new normal”.

The world is still in the middle of processing the countless ways COVID-19 has impacted the way we all live and work. Our habits and lifestyles fundamentally changed almost overnight. All types of businesses—from retail stores to restaurants—have scrambled to adapt in different (and often refreshingly innovative) ways. And it’s already becoming apparent that many of these new behaviors and expectations will remain long after the pandemic is over.

In fact, it’s not an overstatement to say that when it comes to all kinds of payment experiences, COVID-19 changed everything. And for the most part, it’s likely never changing back. So what does that mean for insurance companies as they work to modernize and adapt their claim payment strategies, processes and infrastructures to meet the new requirements of a post-COVID world? Here are a few ideas to consider:

Fast, convenient digital payment experiences are  essential
There was a time when offering policyholders a simple choice between checks and ACH transfers was totally acceptable. Those days are gone forever. After COVID, a much larger number of people (and the vast majority of young people) have come to rely on mobile apps like Zelle to move funds electronically, pay for goods, and send and receive money. If you can’t offer your customers and service providers these same kinds of instant payment experiences, you will quickly become an outlier that’s painfully out-of-sync with your customers’ expectations and lifestyle.

People want different payment options for different situations
Today, more than ever, your policyholders’ payment preferences are fluid and based on specific circumstances. For example, after a natural disaster, policyholders might need money available immediately to pay for temporary lodging or buy basic necessities. If it’s a total loss claim on an automobile, they might actually prefer a more traditional ACH payment. To keep policyholders happy, you need to offer all of these options—and make it easy for them to mix, match, and switch between them to meet different unique needs.

Payments impact overall satisfaction more than ever before
Even before COVID, fast and frictionless claim payment experiences were a high priority for policyholders. In a 2020 survey commissioned by VPay[1], 69% of participants said instant claim payments with no holds or deposits was important to them, 88% said their claim payment experience had an impact on their overall satisfaction, and a remarkable 90% of Gen Z policyholders said they would switch to an insurer that offered instant claim payments. A different survey by McKinsey found that better digital claim experiences, including payments, can raise an insurer’s Net Promoter Score (NPS) by 10-15 percent[2].

Outsourcing will get you there faster
Of course, the sudden demand for more digital payment options doesn’t eliminate the technological challenges of putting them in place. That’s why an outsourcing model makes even more sense today than it did a year ago. A payment partner like VPay is ready to step in, help modernize your claim payments, and deliver the options and experiences your policyholders are looking for quickly and affordably—with minimal impacts on your existing systems and people. It’s the fastest, safest way to stay ahead of the turbocharged payment trends and expectations that have come to define our digital-first world.

Are you ready for a change?  Contact us.

[1] VPay & Engine Insights, Industry Survey Explores the Race to Real-Time Claim Payments https://www.vpayusa.com/resources/industry-survey/

[2] Mckinsey, Digital disruption in insurance: Cutting through the noise

 

Find out how the VPay total payment solution can make a difference for you