Shake the Cobwebs Off Claim Payments
Find out why it’s time to start talking seriously about claim payments—and how you can start offering policyholders and service providers a more convenient and modern payment experience.
Overall, claims processing has come a long way in the past few years. Today, policyholders can use their smartphones to initiate claims, submit photos and documentation, and reach a resolution with their insurance company—often in less than 24 hours. But there is a glaring exception to this fast, convenient, technology-driven experience. At the end of the claims process, more than half of all property and casualty policyholders still wait for a paper check to show up in the mail—an incongruous throwback to the way their parents received payments 30 years ago.
- So why is this final step—this “last mile” of the claims process—so stagnant and resistant to change?
- And why haven’t payments advanced at the same pace as the rest of the claims process?
There are plenty of perfectly reasonable answers: Financial risk, strict regulatory requirements, and complex interdependencies between insurers and banks, just to name a few. As a result, claim payment modernization has traditionally remained near the bottom of most insurers’ priority lists—tucked away in a dark corner where no one talks about it.
But that’s all changing. Policyholders and service providers are rocking the payment boat with new expectations about when and how they get paid. Financial technology companies like VPay are actively breaking down the barriers—and making faster, safer, and more modern claim payment options a practical reality for insurers. And as those two trends accelerate, the benefits of re-examining and modernizing how claims get paid are becoming impossible to ignore. These include:
- Lower Costs.
- Printing and mailing paper checks is expensive. Replacing checks with ePayments offers immediate savings. And finding ways to further reduce or offset banking and treasury fees can have an even bigger impact on your costs. VPay allows you to do both.
- New Efficiencies. A modern, technology-driven payment solution like VPay solves two of today’s biggest claim management inefficiencies by simplifying claims payments and streamlining complex multi-party payments. It also creates a single system of record that provides real-time access to financial, claim, and payment delivery data across all of your different payment types. This creates new efficiencies and gives you access to deeper, more meaningful management insights.
- Better Payment Experiences. Your policyholders and service providers are used to sending and receiving payments with a few taps on their smartphone. This new dynamic—and the expectations that go with it—make paper checks seem like even more of an outdated and unacceptable anomaly. With a fintech solution like VPay, you make it easy for your policyholders and service providers to choose types of payments they prefer—whether it’s check, ACH, virtual card, or push-to-debit—and manage their payments through a convenient mobile app.
When you put all these pieces together, it’s clear that the days of pushing claim payments into a corner with a “Do Not Disturb” sign are over. It’s time to start talking about and investing in the “last mile” of the claims process. And fortunately, there are plenty of new tools and solutions like VPay standing by to make sure you’re successful.
Visit VPayusa.com/mobileclaimpayments to learn more about how you can take advantage of mobile expedited payments and the other benefits of the VPay Payment Platform.