With 2017 winding down and 2018 just around the corner, it is a good time to examine what claim payments strategies worked for you during the past year and what improvements you can make.
When we talk with automotive and workman’s compensation organizations, they often speak wistfully of converting more of their claim payments from checks to electronic payments. However, actually achieving that goal is complex, especially when seeking acceptance from payees.
Although the use of checks has been steadily declining since 2004, adoption has stalled at about 50%. If you’re a glass-half-full kind of person, that’s upbeat news since the percentage of checks has dropped from 81% in 2004. However, the fact that there has been a one-percentage point increase in check use between 2013 and 2016 might bring about a groan from the glass-half-empty pessimist. (2016 Electronic Payments Survey, Association of Financial Professionals)
The Cost of Change
Most businesses today acknowledge that there are efficiencies and lower costs associated with electronic payments when compared to checks. However, there are so many solutions in the market with varying capabilities that it can be difficult to choose a single provider.
An additional hurdle is the cost of making a transition. Changing an internal legacy payments infrastructure can be time-intensive, complex and expensive, especially if you try to DIY the process.
The good news is that you’re not alone; the even better news is that there are proven solutions. The AFP 2016 Electronic Payments Survey showed that 70% of respondents believe it is very or somewhat likely that their organizations will convert the majority of their payments to electronic within the next three years.
But there’s a catch: the respondents admit they are less eager about shifting from checks to electronic payment methods for those recipients that they pay less frequently. In fact, only 12 percent of companies have already transitioned to electronic methods of payments for these transactions.
An Affordable Solution
Rather than undertake a massive internal technology update or increase your workload by trying to manage multiple platforms, VPay lets you works with a single vendor with a comprehensive claim payment solution. Over 70 insurance companies have turned to VPay for our total payment solution and reaped its rewards.
One of the greatest advantages of working with VPay is the ability to include remittance information with payments. In the AFP survey, a whopping 94% of finance professionals cited the need for faster payments that are also “smart.”
VPay also addresses another huge sticking point for workers’ comp and automotive insurers: highly advanced payment preferencing. Delivering payment in the format payees wish to receive not only increases adoption, it also helps you achieve higher levels of customer satisfaction.
And our award-winning, in-house call center that responds professionally and knowledgeably to your payee inquiries? That’s the cherry on top.
If you’re ready to start 2018 with a healthier bottom line and fewer payment headaches, give us call. Or learn more by downloading our white paper.