3 min read
6 Challenges to Digital Payment Adoption in the Insurance Industry
Insurance payments are going digital. Many insurers already accept inbound premium payments from policyholders. Now...
In part 3 of this four-part series, we explained the complexities of mortgagee property claim payments. Here in our final series installment, we take a deeper look into the world of vendor payments: the challenges of bulk payments, the need for detailed remittance information, and benefit of real-time reconciliation.
In part 2 of this four-part series, we took a deeper look into the pain points of lienholder payment, what’s involved with the auto total loss process, and the benefits digitization can provide. Here in part 3, we delve into the cumbersome process of mortgagee property claim payments, the difference between monitored and non-monitored claims, and the opportunity to optimize the customer experience.
In part 1 of this four-part series, we introduced four inherent claim payment challenges involved with paper check payment (e.g. multi-party payments, total loss lienholder, mortgagee, and vendor payments). Here in part 2, we take a deeper look into the pain points of lienholder payments, what’s involved with the auto total loss process, and the benefits digitization can provide.
Changes in consumer behavior toward digital demand increased exponentially in 2020. As Satya Nadella, Microsoft’s CEO stated last year, “We’ve seen two years’ worth of digital transformation in two months.” The increasing customer demand for a superior digital experience has driven the need for insurers to accelerate their digital strategies. Meeting the ever evolving and increasing digital needs and expectations of today’s customer requires insurers to be able to pivot quickly and get to market even faster, while still focusing on cost savings, operational efficiency and business continuity. It would be almost impossible for an insurer to have the resources and expert capabilities to handle these challenges on their own. It takes strategic partnerships and a strong ecosystem for insurers to be able to provide a truly personalized digital customer experience. Partner ecosystems also play a pivotal role in an insurer’s ability to innovate and grow.
Not only is paper check payment much slower (5-7 days) and more expensive (10x more) than digital payments, but it also comes with four inherent insurer payment challenges: multi-party payments, lienholder payments, mortgagee payments, and vendor payments. In this four-part series, we’ll discuss these insurance payment challenges and how digital transformation addresses them. We’ll provide an overview of multi-party payments in part 1, further delve into total loss lienholder payments in part 2, learn about the complexities of mortgagee property claim payments in part 3, and finally take a look at the world of vendor payments in part 4.