Five Essentials for Your Next Generation Claim Payment Solution
Check out five sure-fire ideas for building your next-generation claims payment solution that will allow you to meet your policyholders’ rising expectations, stay ahead of the latest technology trends, and keep your organization safe and compliant.
What does the future of claim payments look like? As you move forward, what capabilities and characteristics should be at the top of your priority list? And given the cost and complexity—combined with today’s dizzying pace of technology change—what’s the fastest, safest way to jump (and stay) ahead of the claim’s payment curve? The answers to these questions are a little different for every organization. But there are some basic, mostly universal concepts and practices that can help frame your claims payment strategy and guide you to a confident, successful future. Here are five for your consideration:
- Decide Whether to Build, Buy, or Partner—You likely already depend on a financial institution to move and manage your money. But how do you deal with that critical “last mile” from the end of the claims process to the point where policyholders’ and service provers’ actually receive their payments? Many insurance providers are looking for trusted, specialized claim payment partners that can help them deal with regulations, relentless technology changes, and limited resources—and there are certainly plenty of organizations that claim to offer “complete payment solutions.” But “complete” means different things to different people, so if you decide to engage with a partner, check under the hood to make sure they provide:
- A complete, modern, and integrated family of payment choices, including checks, ACH, cards, virtual cards, and mobile payments. You should also make sure they’re ready to help you adopt new payment technologies—like push-to-debit and real-time—quickly and painlessly.
- Easy, complete integration with all of your existing claims management and other technology systems.
- In-house technology solutions that don’t rely on subcontractors and third-party vendors. You never want to learn that parts of your payment solution have been outsourced to vendors that you didn’t choose and have no control over.
- Reliable customer service, including an in-house call center you can depend on to answer payment questions quickly and offer payees one-call resolution.
- Total transparency that includes a single system of record, 24/7 real-time views of payments, and versatile dashboards and reporting capabilities.
- Focus on the Experience—Your policyholders’ expectations have never been higher, which means you need to provide them with fast, modern payment experiences that rival the world’s best consumer brands. That includes finding a payment partner with experience in both the latest payment technologies and the insurance industry. It also means building a “last mile” experience that offers policyholders and service providers the smooth, integrated experience they expect—from the moment they file a claim until they receive payment in whatever form they choose. If you can’t provide this type of experience, you are losing out on an increasingly important competitive advantage.
- Understand the Economics—Paper check payments are both slow and expensive. ePayments offer a faster, less expensive alternative. And new ePayment options—like virtual card payments—can actually offset processing fees and turn claim payments into a revenue generator. The healthcare and workers’ compensation markets have been taking advantage of these solutions for years, and they’re ready to provide exactly the same benefits to other types of insurance providers.
- Stay on Top of Compliance—You know the acronyms well: HIPAA, PCI-DSS, SOC, just to name a few. Today’s complex regulatory landscape affects every part of the claims payment process, and keeping up with the latest industry and government privacy, encryption, business continuity, and SLA requirements can be daunting to say the least. The right banking and financial technology partners can help offload and manage many of these issues, so it’s important to carefully consider compliance as you evaluate and select payment solutions and vendors.
- Use the “Last Mile” to Differentiate Your Business—Today, more than half of all auto insurance claims are still paid with mailed paper checks. In this environment, offering your policyholders and service providers a faster, safer, and more modern payment experience does more than lower your costs and makes your business more efficient. It sets you apart from your competitors—and offers you a powerful tool for building trust and loyalty with your policyholders.