Why should your insurance company digitize your claims payments? Simply put: A digital transformation within the insurance claims process is critically needed. While preference for electronic payment is up nearly 60% in the past 5 years, the use of physical checks is only down 10% over that same period.
By incorporating digital payment offerings, insurance companies can meet the customer demand for faster payments, improve the overall claimant experience by providing payment disbursement choice and stay competitive in an increasingly digital environment.
According to a PYMNTS.com study, customers value choice and speed when it comes to how they receive payments. In fact, 73% of surveyed customers want and demand choice in how they get paid, and 72% said speed was equally important. Further, 74% of customers wanted their funds to reach them immediately — far quicker than traditional payment methods.
“We have reached a true tipping point in the payment capabilities available to insurers today,” says Karen Furtado, Partner at Strategy Meets Action. “The rise of digital payment platforms and the ecosystem that supports them have combined to meet insurer’s needs to improve the customer experience and reduce the cost of providing these services.”
Furtado adds that the ability to deliver payments immediately, either to claimants or third-party providers, is a key area of opportunity for insurers who are ready to move forward in their digital offerings.
“The point of delivery and true value from the insurance company to the policy holder is when there’s a claim,” says Furtado. “If insurance companies want to start delighting their customers, if they want to start delivering an improved customer experience, one area they absolutely can be looking at is the way they interact when making that final payment to the customer.”
Delighting the claimant is the end goal through frictionless, secure and swift payment. To implement a digital payment program in an agile, compliant and easily accepted manner, your organization requires these six key capabilities:
1. Payment anytime, anywhere
Let claimants take control over the method of payment that meets their needs, given their circumstance and comfort level.
2. Payment notifications for claimants and third parties
Include customizable notifications with definitive payment for clear communication.
3. Documentation and compliance
Accompany your payment with detailed documentation and explanation of claim for further reference.
4. Multiple payment methodologies
Meeting diverse claimant needs requires the flexibility offered through an innovative payment exchange to provide insurers with an array of payment options — without impacting internal operations and processes. With a payment hub experience, adding new payment options is efficient and flexible, without impact on the mission-critical modern core system.
5. Prebuilt integrations with modern claims systems
With a prebuilt integration system, development time is shortened, and the implementation process is expedited. This provides a win/win situation for the carrier as the risk and timeline of the project are reduced.
6. Preparing for new payment innovations
Seek a proven innovator in your payment provider partnership to ensure that you will have access to new payment options in the future to continue to delight your policyholders.
Deluxe Payment Exchange (DPX) offers a solution for insurance companies to digitize their claims process and delight the claimant. DPX is built on the same rails as traditional paper checks, allowing for integration without disruption or investment on the carrier side with opportunities for considerable cost savings.
Benefits of using DPX:
- Improves customer satisfaction with payment choice and increased speed
- Adjusters and accounting won’t have to learn a new payment system or enroll in new software.
- No need to collect sensitive banking information from your claimants
- Seamless integration with your core systems for claim disbursements
- Allows you to maintain your current banking relationships
“DPX will electronically deliver that payment to the end customer in a timely fashion and deliver on that brand promise of delighting the customer, and really starting to improve customer experience,” adds Furtado.