According to a report by Technavio, the insurance software market will grow by $7.29 billion by 2025 at a Compound Annual Growth Rate (CAGR) of 8.09%. This growth is due to the increase of government regulations on compulsory insurance coverage. Motor vehicle insurance is mandatory worldwide, while health insurance is compulsory in most developed countries.
Due to this increasing demand, small and large insurance companies are investing in software to better serve their government and corporate clients. Since most companies require state-of-the-art technologies to achieve this goal, they partner with Independent Software Vendors (ISVs) to help sell their services.
ISVs provide different types of software to insurance companies, including analytics, Customer Relationship Management (CRM), and data management tools. Fortunately, it’s also possible to integrate the existing software with additional payment functionalities and offer a one-stop solution for insurance companies.
Here, we look at how a Business-to-Business (B2B) technology partnership can help insurance software providers sell better and win big deals.
Major Requirements of an Insurance Company Targeting a Government Client
Insurance companies can sell their services to government organizations, private companies, and corporate clients. To achieve this, they need software that meets some essential requirements.
Cybersecurity and Fraud Prevention
Statistics show that between 2006 and 2022, there were 30,819 reported cybersecurity incidents by U.S. federal agencies. Due to the increase in such cases, the government has proposed a budget of $10.89 billion for cybersecurity in 2023. Therefore, insurance companies targeting government clients must pay attention to fraud prevention and cybersecurity measures. Solutions that keep data safe from any breaches are a must-have for most state and national government organizations across the globe.
Seamless Integration of Services
Government agencies prioritize citizens’ access to services, and they need providers that can help them achieve full-service integration. For instance, insurance software providers that offer data management tools can integrate this with ACH payment solutions to make it easy for the government to accept payments.
When dealing with citizens, trust is essential. Government agencies need an open and transparent system for the citizens to feel safe. Insurance companies work with technology companies that offer transparent and trustworthy solutions.
Major Requirements of an Insurance Company Targeting Corporate Clients
On the other hand, if the insurance company targets corporate clients, here are some requirements they need to meet:
Good Customer Experience
In today’s insurance industry, digital payments have become necessary for bill collection. Consumers now prefer to make online payments because they are faster, cheaper, and convenient.
To keep consumers happy, corporate organizations love working with insurance companies that give them a first-rate customer experience.
A Platform that Manages Multiple Transactions
Large corporate entities accept different kinds of payments from their vast pools of customers. Therefore, they need to work with an insurance provider with a platform that accepts multiple transactions from credit cards, ACH, and email invoicing to SMS payments. A useful B2B software platform comes in handy for such large companies.
PCI Compliance for Collecting Credit Cards
Corporate clients collect sensitive customer data during payment processing. To target these clients, the insurance company needs PCI-compliant software with tokenization and end-to-end encryption functions that keep the credit card information safe.
The Go-to Market Strategy for Insurance Companies
Approximately 5,929 insurance companies across the U.S. compete for the same clients within the private and public sectors. One of the go-to strategies to get clients is having referral partners. Collaborating with other businesses helps in the acquisition of new clients. For instance, they work with an ISV to get more customers within their network.
Benefits of Partnering with a Technology Provider
ISVs get tons of benefits from integrated payment systems. However, this only works flawlessly if they partner with a technology provider like iCG. Here are some of the expected benefits of these partnerships:
- Seamless Integration: Whether the ISVs are selling CRM or analytics software, iCG Payment Solutions can easily integrate with their existing software to ease payment processing. The convenient checkout system makes it easy for customers to pay insurance premiums.
- Advanced Technology: Partnering with a technology provider comes with advanced tools. iCG manages all the technology and transactions to carry the security burden. Therefore, the insurance company does not have to handle audits. Additionally, iCG servers get monitored, audited, and backed up regularly.
- Reliable and Secure Payment Processor: Insurance company owners prefer a secure, dedicated, and simple payment processor that allows them to view all the payments in one place. iCG’s Virtual Terminals help the company with the reconciliation process and optimizing visibility.
What to Look for in a B2B Payment Technology Partnership
Software vendors can meet the needs of their clients much better if they get into a B2B technology partnership. However, before making a choice, there are some essential features to consider, namely:
Customized Hosted Payment Portals
A hosted payment portal generates a website payment solution to allow the insurance company to collect money over the internet. These portals easily integrate with the insurer’s existing website, making it easy to process payments. They are super customized and mimic the company website. As you look for a B2B technology partnership, consider whether they offer this service for easier integration.
Your B2B partner should prioritize the security of sensitive customer data. iFrame technology helps them with advanced security features to tokenize transactions and remove sensitive data from your scope.
The insurance industry heavily relies on recurring payment technologies. Customers can pay their insurance bills automatically on a fixed schedule, ensuring premiums are paid on time. Get a partner with a payment processor that allows recurring payments.
The partner should have technologies that can generate and distribute multiple invoices daily. Email invoicing solutions help insurance companies create and send invoices to hundreds of customers simultaneously. Customers need to click on a link redirecting them to pay their insurance premiums.
Check verification services help in the prevention of fraudulent activities. A technology partner with check verification systems can verify details on each check and detect fraud in real-time.
Interactive Voice Response (IVR) works for insurance companies with customers who can’t access the internet. Transactions are accepted via the phone keypad using modern technologies like speech recognition.
Insurance software providers can sell their services to a wide range of clients, including government organizations, private companies, and large corporations. They can partner with a B2B technology company to effectively market their software with the right tools.
iCG is a reliable payment processor and Nacha-preferred partner that offers a one-stop solution that integrates with the existing software in insurance companies.
Schedule a call with iCG today to learn more about how we can help your business.