The case for a modern payment experience for insurance was made long before the pandemic; however, since then, consumer demands for more convenient payment options have accelerated. Now, it’s more necessary than ever before to partner with a modern fintech that allows more flexibility with payments, boosts retention, and reduces costs.
At the height of the pandemic, many states directed insurance companies to suspend cancellations for non-payment, prompting insurance companies to find ways to accelerate receivables by providing a better payment experience.
After suffering through layoffs and higher-than-usual unemployment during the pandemic, the nation is now trying to find its footing again through “The Great Resignation.” Whatever the reason for remaining unemployed—whether involuntarily or by choice—many consumers are faced with reprioritizing payment responsibilities, and when homeowners are financially stretched, homeowner’s insurance can be an unfortunate casualty.
Unemployment can also have a negative impact on consumer wallets vis-a-vis health insurance payments through COBRA, which is significantly more expensive than purchasing through an employer. It’s important for policyholders to have visibility into their billing information through a comprehensive policyholder portal as well as the ability to receive payment reminders via email or SMS text messaging. Late premium payments can lead to lapses in health insurance and even higher rates for policyholders.
You may think that you already offer payment flexibility with IVR and web payments; however, adding text and voice payment options make it even easier for policyholders to pay. Being able to pay a premium by text is amazingly simple and convenient. The ability to simply talk to Amazon’s Alexa or Google Assistant to pay bills is also another level of convenience.
Jennifer has had to work from home for quite some time. She used to pay bills on her phone while she was on her lunch break, but now a ‘lunch break’ is no longer a concept that exists. She keeps forgetting to pay her insurance premium, but then remembered that the company is integrated with Amazon Alexa. While preparing a meal for her children, she speaks to her Alexa on her Amazon Echo and finally gets the bill paid.
It has been said that the easiest bill to pay gets paid first. Offering better payment channels like pay-by-text, payment methods like credit card payments and payment options like Guest Pay and Apple Pay can be the difference between getting a payment on time or not.
Sam has been laid off from his job. His sister asks if there is anything she can do during this difficult time. He mentions that he needs help with his insurance premium. To ease the burden, she uses the Guest Pay option for his insurance company, allowing her to pay the bill without having to have his username, password, and access to all of his account information.
Insurance companies may also be experiencing an increase in credit card payments. Those in economic hardship will often need to float their costs rather than pay with cash via ACH payment. Alacriti helps insurance companies with this issue by routing payments in the least expensive way possible, saving them costly interchange fees.
The insurance industry is unique in that the opportunity to impress policyholders is primarily during the sales and onboarding process. This heightens the importance of the digital experience, making it so user-friendly bill payment solutions have a direct impact on policyholder satisfaction and retention. Lacking new and innovative ways to accept payments can negatively impact your receivables. The incentive for insurance providers to offer a better solution is more significant than ever before, and the time is now to make a positive change.
Alacriti offers the most customizable billing and payments solution, Orbipay EBPP, for insurers. The solution provides easy access to the payment channels (mobile, Facebook Messenger, intelligent assistants), payment methods (ACH, credit cards, debit cards), and payment options (one-time, recurring, autopay, payment plans, and balance reload) that today’s customer demands.
To find out how your organization can deliver a better customer experience, accelerate cash flow while reducing costs, and streamlining operations, contact us at (908) 791-2916 or info@alacriti.com.
Updated from a blog originally published August 19, 2020.
