By: Elisa Logan, Vice President, Growth
Claim payments present an interesting dilemma for property and casualty insurers. On the one hand, insurance companies rightfully place a high value on stability, safety, and continuity, which explains why more than half of all claims are still being paid with tried-and-true paper checks. On the other hand, new technologies, changing regulations, and rising expectations are creating new payment pressures and dynamics that have become impossible to ignore.
So what’s the smartest way to deal with these tensions? How do you modernize your claim payment processes without introducing financial disruptions and risk? And when you decide to travel down the road of claim payment modernization, how do you stay ahead of unpredictable payment trends, avoid technology dead ends, and make decisions that lead to the payment outcomes you’re looking for?
These are all complex questions that have caused more than a few property and casualty insurers to simply put (and keep) payment modernization on the back burner. But that’s all changing. Today, policyholders and service providers are looking for better, more convenient payment experiences from the insurance companies they work with, which is quickly making a traditional, status quo approach unviable and obsolete. On the flip side, payment modernization is steadily becoming easier and less disruptive—thanks to a growing number of partnerships, technologies, and experts working together to build solutions designed specifically for the insurance industry.
Here’s one good example. Over the past few years, VPay has built a productive relationship with Nacha, a non-profit organization that exists to enable and improve ACH payments for thousands of businesses across different industries. In early November of 2019, VPay became a Nacha Preferred Partner. The goal of this partnership is simple: To make ACH payments a smoother, safer, and more efficient payment option for insurance companies. In other words, Nacha is responsible for defining ACH standards and driving innovation in the ACH world, and VPay is working to make sure all those ACH innovations are available to insurance companies as part of a safe, modern, end-to-end payment solution.