Insurance carriers across the globe leverage technologies to serve their customers better. Software automation in customer support, premium collection, and accountancy departments change how these organizations operate now. The rapid adoption of payment technologies reduces the amount it takes for an insurance agency to collect its premium. Moreover, insurance agents can rely on these technologies to keep their customers updated with their insurance policies.
This blog talks about the benefits and types of payment products that an insurance company can adopt right away.
Why Should Insurance Carriers Adopt Payment Tech?
Most insurance brokers collect post-dated paper checks from their customers for premium payments. This process is manual and cumbersome. Moreover, the process is extremely slow compared to online payments. With online ACH and credit cards, these carriers easily collect premiums for the policies over the internet or by phone.
The accountants at all big insurance carriers deal with thousands of payments every day. They need to reconcile statements and generate invoices for all their customers quickly. Collecting payments via ACH solutions or credit cards automatically creates a digital trail for them. The best payment processors help these companies accept payments via multiple payment methods on a single platform. They also help create a two-way sync that automatically logs related payment information to back-office accounting software using developer plugins.
Must-Have Payment Tech Components for Premium Collection
A significant portion of customers prefers paying their insurance premiums with checks. Therefore, most insurance players cannot switch to a completely online payment method overnight. They must still accept paper checks. Reliable check verification and Remote Deposit Capture Services help these companies verify checks instantly and prevent costly check returned fees.
The premium payment for most common insurance products happens over time. Instead of a one-shot payment, individuals and companies must pay their term insurance and health insurance premiums in parts over several years. With recurring payment ACH technology, the insurance carriers can automate premium collections with a single click.
The ACH technology is as safe as credit card transactions with advanced authorization methods. Insurance carriers possess the ability to collect web-based authorization to prevent fraud and prevent unnecessary chargebacks when collecting payments from their customers. Alternatively, they can collect payment authorization over CCD, TEL, and PPD transactions.
Multi-Platform Payment Gateways
Carriers that sell insurance coverage adopt versatile payment methods to serve their customers. Having a single platform to manage both ACH payment solutions and credit card payments helps them reduce dependency on different vendors.
Complementary Payment Solutions that Help
SMS payments are quickly gaining popularity as the best way to maintain and develop relationships with clients. Insurance carriers can use SMS payments to send their customers a simple payment link. These customers will use this payment link to pay via ACH technology. Credit cards remain an option to pay from anywhere globally using any internet-enabled mobile device.
Modern-day carriers send the insurance coverage and invoice details to most of their customers via emails. With the email invoicing tech, carriers automate the entire invoice and payment link generation process.
Carriers that sell insurance usually have a robust website to manage insurance claims and new customer requests. These carriers can use hosted payment portal solutions to create a custom payment page on their website. The customers will use these portals to log in and complete premium payments within seconds. Moreover, these carriers see the benefits of adopting advanced portals that help customers access their historical data. They see upcoming payment information over the internet.
Large insurance carriers serve more customers and reduce wait times for collections without growing their team size with the right technologies. Learn how large enterprises adopt payment tech to streamline their financial operations with an expert.
Date originally published: April 24, 2022