By: Elisa Logan, Vice President Marketing
Digital technologies have been transforming business models across virtually all industries. At first, it seemed like the transformation of the insurance industry lagged behind the others, but no longer. Insurtech—digital technologies built for insurers—is driving change within the industry by transforming the nature of insurance products and services, and how they’re delivered. The key to success is to harness these technologies to match customer expectations and create new business models built for speed and simplicity.
Where do you start with digital? A good place to begin is taking a look at your customer journey. Digital technologies, like insurtech, make it easier to streamline customer touchpoints at each step of the engagement process. With mobility now seen as the primary method of interaction, it helps to have an engaging digital experience that’s readily accessible by a mobile device for greater convenience and satisfaction.
Integrating insurtech into your core business can also help you streamline processes and control costs. For example, it allows you to automate many tasks that required manual input, such as claims processing and reconciliation. By automating these tasks, customers and insurers can both benefit. Customer claims take shorter periods of time, while insurers can cut operating costs, such as check printing and postage, out of the process. In fact, one study found that automation helps reduce the costs of a claims journey by as much as 30 percent. Another study measured the impact of digitization and insurtech on an insurer’s business led to high customer satisfaction, greater efficiency, and greater effectiveness, particularly in claims. It found that with insurers that used digital technologies, customer satisfaction grew by 10-15 points, improve claims adjustment expenses by nearly 30 percent, and increase payment accuracy by approximately 4 percent by reducing fraud.
The challenge in integrating insurtech into your business is deciding how much you want to handle internally versus finding a technology partner with the right expertise. Working with outside vendors alleviates technology, compliance and security concerns. They maintain certifications and resources to ensure they stay on top of banking changes, regulatory changes, technology advancements, and burgeoning security perils.
VPay is trusted by thousands of insurers to handle their total claim payment process – from flexible payment types to configurable solution sets, treasury management, and security, support and financial controls. VPay has successfully delivered billions in payment for insurers and leverages their database of payment preferences to ensure you realize both customer satisfaction and cost efficiencies. Making use of the best in insurtech to deliver a total payment solution that eliminates check and postage on day one, speeds up the claims payment process, gives you greater payment flexibility, and boosts customer satisfaction.
Find out how much you can save with the VPay total payment solution using our ROI calculator: http://www.roi.vpayusa.com/.
Digital disruption in insurance: Cutting through the noise, Digital/McKinsey, March 2017