By: Elisa Logan, Vice President, Growth
Today, you can walk into an Amazon Go retail store, grab whatever you want off the shelves, and walk out—without going anywhere near a checkout line. Houses are smart enough to buy their own groceries. And peer-to-peer payments and mobile money apps are creating incredible new economic possibilities for the 2+ billion people who don’t have access to formal banks or credit.
In this new world of instant, invisible, and free payment experiences, people carry fundamentally different expectations into every financial transaction, whether it’s paying a friend back for a movie ticket or using funds from a claim payment to pay for repairs at the auto body shop. And this new dynamic has profound implications for how insurance providers approach claim payments.
According to a 2019 Accenture study, 80% of consumers are looking for more personalized experiences and services from their insurance providers1. These raised expectations, combined with the current explosion in new payment innovations, are creating a new imperative for insurance providers: Provide more modern and convenient payment experiences—or pay a high price in customer satisfaction and loyalty.
So exactly what kind of claim payment experience do your policyholders and service providers want and expect? There is a large and growing body of research that explores all the complex nuances of emerging payment preferences and trends among consumers. But when it comes to sending and receiving money, people are really looking for three basic attributes²:
“No checkout” shopping and peer-to-peer payment apps are thriving because people place an increasingly high value on convenience and simplicity. In the claim payment world, that means finding ways to hide the complexity of dense explanations of benefits and multi-party payments behind a convenient, seamless, app-driven experience.
Today, every good consumer experience is defined by personalization. As a result, consumers simply expect every payment experience to be carefully tailored to their personal habits and preferences. That means insurance companies need the ability to capture, understand and keep track of their policyholders’ payment preferences—and then honor those preferences—even if that means delivering different forms of payment to the same policyholder or service provider in different situations.
Within 30 seconds, anyone with a smartphone can get real-time information about virtually any aspect of their financial and personal life—from the exact status and location of the espresso machine they just ordered to the precise value of their stock portfolio. In this context, ending claim experiences with paper checks that spend days in the mail (with zero status information available) is a recipe for lowering policyholder satisfaction. To satisfy their hunger for information, you need to make real-time information about the status of their claim payments as available and accessible as their checking account balance and the status of their latest Amazon order.
Depending on how your claim payment system works today, delivering these kinds of claim payment experiences may seem like a tall order. But financial technology companies like VPay are ready to help you modernize and improve your claim payments quickly—so you can deliver the simple, personal, and everyday/everywhere experiences your policyholders and service providers expect.