By: Elisa Logan, Vice President, Growth
How much time do you spend thinking about how claim payments impact your policyholders and your bottom line? Here are five reasons you should spend more time:
Payment is the last step in the claims process. It’s also the one your policyholders remember most. Don’t fall into the trap of believing that “the check is in the mail” is still good enough. If you can’t deliver a fast, easy payment experience, you’re missing a prime opportunity to differentiate your business and build loyalty with your policyholders.
This digital imperative is especially high among millennials who demand convenient mobile experiences in every part of their lives, including when they send and receive money. Nothing says old and stale like waiting for an old-timey paper check, no matter how easy and modern you’ve made the rest of your claim experience. Make sure you’re not sending the wrong message to an exploding, digital-native population that simply doesn’t accept a “that’s the way we’ve always done it” mentality.
You depend on financial institutions to move and manage your money. But that doesn’t mean they’re the best option for modernizing your payment experience. The right claim payment partner can complement and enhance traditional banking services to help you deal with regulations, technology changes, and other barriers that prevent you from embracing the latest payment innovations. The right claim payment solution can also help you stay ahead and take advantage of important payment trends quickly—without re-engineering your whole system.
Moving from paper checks to electronic payments isn’t easy in a heavily regulated industry with complex payment requirements. But today, you have a growing variety of viable options—from building or buying a claim payment solution to partnering with a fintech company that specializes in insurance claim payments. Either way, “it’s too difficult and risky to change” is no longer a valid response for sticking with the status quo.
Moving policyholders and service providers from paper checks to e-payments will save you money—whether eliminating it’s printing and mailing costs, reducing band fees, or taking advantage of the revenue sharing that’s available with virtual cards. If you’re not actively working to move policyholders to more efficient, cost-effective forms of payment, you’re spending money you don’t need to.