4 min read
The Pandemic Has Boosted Mobile Payments – But There’s Still Potential for Insurers to Tap
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.
Although the pandemic continues to send economic shockwaves throughout the insurance industry, the degree and scope of impact has not been evenly distributed. Much of this disparity can be attributed to the digital infrastructure within each organization, as widespread social distancing mandates have forced businesses and consumers to abandon traditional in-person interactions in favor of remote access alternatives.
Determined to continue serving customers in the face of global crises, many insurance companies have accelerated their technology road-maps, optimizing processes and enhancing communication capabilities to meet the urgent needs of today’s consumers. And as the main touch-point between providers and policyholders, the area of payments has become a primary focus in the industry’s intensified commitment to digital transformation.
The vast majority of B2C companies rely on email and social media for digital communications with their customers. And while both are important parts of a multi-channel engagement strategy, the barrage of daily messages has led to a climate of inbox overload and social ad fatigue. The chances of the recipient opening, reading, and responding to any given message declines as more and more brands compete for consumers’ time and attention.
When most of us think of credit card fraud, we envision the stereotypical thieves, con artists, and hackers. Unscrupulous wrongdoers on a mission to pilfer money, stockpile identities, and wreak general havoc upon the lives of their victims.