Digitalization of Payments in The Insurance Sector

The ripples of technology have touched every other industry or rather human lives on a whole. For those insurers ready to seize the moment, digitalization offers an enormous opportunity. The companies that stand to benefit the most are those who are eager to explore the facets of digital payment to reorganize all their operations, from underwriting to customer service and claims management. The impact on both revenues and costs can be huge, enough to gain an edge over your rivals by becoming more effective and efficient.

Digitalization of Payments in The Insurance Sector

The Changing Landscape

With ‘on-the-go insurance’ concepts such as travel insurance for buses & flights and property insurance for rental holiday homes becoming the norm, the insurance sector is being recognised more than just a ‘planned annual payment’. Paying by check is dating out fast and the average citizen today is more comfortable digitally transferring funds using apps like GooglePay, PayTm and other mobile banking solutions. An increasing number of urban users now expect their insurers to offer simple, transparent and flexible online payment solutions. An online website saves on the commission of an agent and balances that money into reducing the premium amount. For insurers, digitization helps in expanding its footprint and leveraging low-cost digital distribution channels for sales and service, which eventually deepens their market penetration.

Insurance – being one of the oldest industries, many companies are still holding on to their legacy systems. While some may be contemplating the benefits they could accrue out of digital transaction banking, they are not in a position to do so. The finance industry suffered from a similar set back a few years ago. Their indifference towards the fast-changing customer needs, resulted in them losing out to their competitors who were quick to ride the digital wave. The history could soon be rewritten for insurance providers who aren’t ready for change and are still using payment providers that can’t keep up with the changing landscape of insurance.

The Need to Embrace Digital Payment

Insurers need to stay with the times and embrace new technology. To begin your payment revolution, you must first acknowledge that there is a digital wave that can help you sail through the current times. Insurance companies with an eye for the future are therefore aiming at modernizing payments and collections process and improving the customer experience while enhancing customer engagement and the quality of the overall relationship with the company. The manual payment process can often be influenced by human error such as entering incorrect reference numbers or trying to find the relevant details of the customer who’s making the claim. Insurers who have adopted the digital method of instant payments cut down heavily from the labour and time of manual processing. Being able to just pay a claim out into a customer’s account is much easier and cost-effective.

Mindgate – Your Native Technology Partner

A corporation internet banking payment solution provider can develop this for you. Working with a payments solution provider such as Mindgate can make your payment systems digitally native and allow you to combine offerings while being more flexible. Mindgate can ensure the system will be processed via a range of different methods.