By: Elisa Logan, Vice President Marketing
The insurance industry is facing enormous challenges. Factors like globalization, industry consolidation, regulatory changes, innovative distribution channels, and shrinking margins have created a new reality—and securing a new competitive advantage is now more difficult than ever. Today’s insurers must streamline their operations and make them cost-effective. They have to differentiate their products and focus on customer satisfaction and retention, while maintaining a competitive cost structure, in order to secure market share from an increasingly demanding customer base.
The J.D. Power 2018 Insurance Digital Experience Study shows policyholders want more digital touchpoints with their insurers as well as personalized digital experiences and seamless customer service fueled by digital software—from chatbots to apps. These expectations are driving innovation in the automotive insurance space as insurers build their digital capabilities to provide next-level service.
The same survey also shows most insurers’ digital offerings are lacking in insurance-specific capabilities—including processing claims. When insurance companies cling to outdated methods of claim payment processing, this results in a highly fragmented policyholder experience. It also adds unnecessary administrative costs and decreases efficiency, since manual payment processing is labor-intensive and results in lengthy wait times.
Insurance companies must modernize their approach to claim payment processing in order to help differentiate themselves and meet the needs of their policyholders.
For example, when an auto accident occurs, policyholders want to get back in the driver’s seat as soon as possible. But because auto accidents usually require payments to multiple parties—doctors, hospitals, body shops, and towing companies—it’s not always a fast or straightforward process. However, when policyholders receive a check to cover repairs, they may have to endorse the check themselves, then take the check to a body shop to be signed before they may retrieve their car. It’s a multistep process that adds time to an already frustrating process.
Simple strategies that deliver
While it may seem daunting, moving away from paper-based payment can be as easy as adding complementary solutions and services from a third-party vendor and making small tweaks to your existing platform with the support of in-house IT resources will have a big impact.
Here are a few strategies to consider.
To learn more about how VPay can offer you a Total Payment Solution that increases customer satisfaction and sets you apart from the competition download the white paper, Top Strategies for Auto Insurance CFOs: Modernizing Claim Payment.
Visit vpayusa.com or call 855-VPAY-USA to get started.