Larger insurance organizations often wield the most digital advantages in the industry, which presents a number of challenges for other property and casualty (P&C) and workers compensation insurers, especially. This is especially prevalent today, since modern consumers (Millennials in particular) expect easy and intuitive digital experiences for everything from buying an insurance policy to receiving claim payments.
In fact, a recent Invoice Cloud survey found that nearly 50% of policyholders will most likely switch insurers within the next year – and the choice to switch is often tied to the quality of their current provider’s payment experiences. Retention is already a major concern in the insurance space, especially as digital native insurance carriers continue to disrupt the industry. With this threat of increased churn and today’s overly saturated market, insurers must do everything they can to digitize the policyholder experience.
So, how can P&C and workers comp insurers use innovative technology to get a leg up on the competition? Utilizing Outbound Payments are a great place to start.
What are Outbound Payments?
With an Outbound Payments functionality, insurers can pay claimants quickly by digitizing the claims payment process. Outbound Payments allows insurers to disburse claim payments digitally – even instantly – for faster transactions, while empowering claimants to choose the most convenient method for receiving their payments.
Policyholders can choose to receive their claim in several ways, including:
- Same day ACH
- Instant Pay (an instant deposit to a debit card)
- A pre-loaded virtual debit card
- A mailed check
- A printed check at home
Outbound Payments offer a digital advantage that puts insurers in an ideal position to better meet the changing expectations of today’s policyholders.
Why are Outbound Payments ideal for sending claim payments?
As we mentioned, modern customers expect a digitized experience, regardless of industry, and insurance is no exception. That means providing a simple, technology-forward experience is the key to keeping retention high and attracting new policyholders.
The convenience that Outbound Payments offers is a critical piece of that intuitive policyholder experience. Completing insurance claims can be a stressful policyholder engagement point – so, to provide the best possible experience, your organization needs to leverage technology to make the process effortless. And it’s especially important that policyholders have no issues with what they care about most: receiving their payment.
Besides elevating the policyholder experience (and, in turn, increasing customer satisfaction), Outbound Payments can benefit insurance organizations internally as well. Insurers reap the benefits of a smoother, quicker claims process, which saves organizational time and resources in the long run.
What are the benefits of Outbound Payments functionality?
Outbound Payments facilitate transactions between a carrier's existing claims software and the claimant, enabling simple and secure electronic claims payments.
By utilizing one partner for your insurance organization’s inbound and outbound payment efforts, you’re able to create a seamless experience for both your in-house staff and your policyholders. Insureds get the added benefits of saving their banking information for future use, and your team can enjoy the ease of a streamlined solution that addresses all your payment needs.
Other benefits to the insurer include:
- Higher retention rates
- The ability to send digital, multi-party payments
- Increased policyholder satisfaction
- Improved internal payment efficiencies
- Reduced costs associated with printing and mailing paper checks
- Easy integrations between insurer claims modules and core software
- The highest possible level of payment security
For P&C and workers compensation insurers looking to keep pace with larger carriers or safeguard retention rates against digital disruptors, utilizing Outbound Payments is an easy way to demonstrate that your organization cares about the policyholder experience, without a major lift from your team.
Schedule a demo today to learn how your organization can take advantage of Invoice Cloud’s up-and-coming Outbound Payments feature.