Karen is a Partner at ReSource Pro Consulting.
Insurers Lagging on Digital Payment Capabilities
Although the past few years have been characterized by rapid digital payment options, the real game-changer has been the focus of market leaders to embrace the transformation of the actual payment experience—both for premium and claim payments.
In our recent research report, “The Race Toward True Digital Payment Experiences: The Digital Transformation of Premium and Claim Payments in 2022 and Beyond,” we explain the current state of premium (inbound) and claim (outbound) payments. What is clear is that although there is a strong effort by property and casualty insurers to provide true digital payment experiences, many continue to operate with outdated processes that don’t meet the needs of today’s consumers.
Transforming the Premium and Claim Payment Experience
New preferences brought on by the pandemic and a more digital-connected world demand that insurers reimagine digital payments. Within premium payments, this means offering policyholders greater control of their payment experience, including changing the payment method, setting an invoice notification date, and choosing a preferred due date, as well as setting other notifications and reminders.
On the claims side, it can be more challenging to establish a fundamental digital interaction because the initial intake of claims differs from call centers, email, text reporting, and websites. It requires a foundational shift in how and when to obtain payment preferences, which vary based on the type of claim being facilitated. With today’s digital interactions, we have a mandate to investigate and rethink the initial process to create the foundation for digital payments that provide customers with the power to choose. These interactions extend beyond payments to include updates, communication, and a complete digital payment experience.
Put the Power in the Hands of the Payee
For both premium and claim payments, speed and convenience are paramount. The acceptance and delivery of payments must be in real time, and capabilities must give customers the power to create tailored digital payment experiences that fit their needs best, from how they want to transact to how they want to communicate with their insurers.
For more information on the digital payment evolution in property and casualty insurance, read our recent research report, “The Race Toward True Digital Payment Experiences: The Digital Transformation of Premium and Claim Payments in 2022 and Beyond.” Visit our Carrier Consulting page to learn more about how ReSource Pro can help carriers navigate digital transformation successfully.