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 outbound claims payments are also catching on. These changes will bring benefits to both insurance companies and insurance customers. However, before these benefits can be realized, there are six challenges that must be overcome.
Challenge #1: Fragmented Customer Experience
When developing any digital interface, the goal should be a convenient, intuitive and seamless user experience. However, this doesn’t always happen. When using a third-party vendor for digital payments, a fragmented customer experience is possible. This may confuse consumers or possibly even make them question whether the payment systems can be trusted with their information.
Customers expect the same ease, speed and flexibility when receiving claim payments as they do when paying their premiums. A consistent brand experience throughout the entire customer lifecyle is important. When selecting a digital payment partner, go with one that can deliver a seamless customer experience with your branding applied consistently at every touchpoint.
Challenge #2: Complex Integration Path
As digital demands increase, the need for multiple digital systems is also increasing. Digital inbound and outbound payments are part of the puzzle – a very important part – but your payment systems don’t exist as an island. They need to integrate with your other systems.
To reduce your risk and ensure seamless integration, work with a payment partner who is already partnered with other companies to deliver validated solutions at an accelerated pace.
Challenge #3: Limited Resources
Like all companies, insurance organizations have limited resources. Developing a digital payment system in-house can eat up those resources fast. The process can take time, slowing you down while your competitors race ahead. And even after pouring your resources into a system, there’s no guarantee that it will work seamlessly.
Before you reinvent the wheel, consider whether it would be better to buy (or partner) rather than to build a digital payment platform. Partnering with an experience provider who understands the insurance industry and workflows can be the most flexible and cost-effective way to achieve cutting edge technology and scalability without the need to constantly upgrade. A good digital payment partner allows your brand to shine within a preconfigured platform that accommodates your needs perfectly.
Challenge #4: Security & Compliance
The insurance industry is heavily regulated, and payments must be processed with compliance in mind. Security is also a top concern, especially these days, when data breaches and cyberattacks have become commonplace. If policyholders don’t trust that their personal information is being protected, they might take their business elsewhere.
When selecting a third-party payment partner, look for key security features, such as PCI DSS Level 1 compliance, along with tokenization and routing.
Challenge #5: Support for Multiple Payment Methods
Payment methods are evolving and growing. There are credit cards, debit cards, and ACH payments – and don’t forget about Apple Pay, Google Pay, Venmo and others. Some people like to pay through a mobile app, while others would rather pay by text. Policyholders can also have strong preferences regarding one-time payments or auto-pay.
Which payment options you need will depend on your customer base. Younger customers might prefer text payments, while mature customers might like to pay from a policyholder portal. Either way, the more options you provide, the more policyholders you’ll satisfy.
When selecting a digital payment partner, look for one that can support multiple payment methods.
Challenge #6: Complicated Reconciliation Process
Offering multiple payment methods for both premium and claim payment is convenient for policyholders, but it can make things more complicated for the insurance company. Accounts need to be reconciled and any discrepancies found and resolved quickly.
When choosing a digital payments partner, look for one that offers real-time data, line-item detail, and aggregated reconciliation that make analyzing payment activity and reconciling accounts quick and easy.
The Key to Overcoming All Six Challenges
The secret to easily overcoming all these challenges is finding an industry-specialized and highly experienced partner. That partner is One Inc. We provide digital payment technology designed specifically for the P&C insurance industry. As your single source for inbound and outbound digital payments, we facilitate superior policyholder and agent experiences. We can work with your existing banking relationships and we offer fast, streamlined setup and integration. Learn more.
Want to learn more about the digital trends, technologies and strategies that are redefining the insurance industry? Get the New Insurance Experience whitepaper today.