Page 33 - GS250301

Insights and Expertise
ChapterTitle

This data-driven, automated approach enhances customer Mid-term adjustments for the 21st century
experience by eliminating common friction points,
particularly in urgent situations. It’s especially valuable in Sometimes, insurance claims need to be adjusted to
sectors where time-sensitive claims are common, such as account for changes. This creates problems for payments:
travel, agriculture and property. a payment needs to be cancelled, and a new recurring
payment needs to be made.
By using real-time data to trigger payments, insurers
reduce administrative costs, improve efficiency and If the new payment fails for any reason, then there are
increase customer satisfaction. As more insurers adopt additional admin costs, and some customers may want to
parametric models, customers will benefit from faster, go elsewhere rather than deal with putting their payment
hassle-free payouts. through multiple times. All the while, the customer won’t
have the coverage that they need until the payment is
Tackling recurring payment issues settled.

Recurring payments are essential in insurance (as they The same technology that facilitates recurring payments
are in many other industries), with most policies relying also makes changing them equally easy. Technology like
on monthly or annual premiums. However, issues such network tokenization makes adjustments significantly
as expired cards, insufficient funds or bank changes easier by increasing the likelihood of new payments going
frequently lead to payment failures. Missed payments can through (see https://bit.ly/4bi3PtE).
lead to coverage lapses, increased administrative costs
and customer dissatisfaction. By packaging the customer’s payment details in a way that
card schemes will accept, we can make it far more likely
To address these challenges, insurers are implementing for an individual payment to go through, whether it is a
tools like account updater services, which automatically first payment, a recurring payment or a changed payment.
refresh stored payment details when customers’ bank or
card information changes. Smart retry technology, which Embracing innovation for the future
times payment attempts for optimal success, also helps
reduce failed transactions. The future of insurance payments is rooted in digital
solutions that adapt to evolving customer expectations.
Fraud detection further improves security by monitoring Payment solutions today allow insurers to deliver a more
transactions for irregularities, ensuring policies remain efficient, transparent and customer-centric experience. By
active and reducing the risk of failed payments. reducing delays, minimizing out-of-pocket expenses and
simplifying the claims process, insurers can build trust
Together, these solutions make recurring payments and foster customer loyalty.
smoother and improve overall customer satisfaction and
retention. Insurers that embrace these innovations are well-
positioned to stand out as customer-focused, forward-
In today’s competitive market, customer loyalty is closely thinking brands. By investing in modern payment
tied to the quality and efficiency of the claims process. A technology, insurers can shift from reactive claims
faster, more customer-friendly approach can transform processing to proactive, data-driven support.
what’s often viewed as an inconvenience into a positive
experience. Insurers that prioritize speed, transparency This evolution has the potential to set a new standard for
and convenience not only increase customer satisfaction the industry, helping insurers deliver genuine value to
but also strengthen their reputation. customers when they need it most.

By offering digital payment options like virtual cards, Paul Clarke, chief growth officer at Cashflows, has a wealth of experi-
direct debits and digital wallets, insurers can meet ence leading product, business strategy and innovation functions in the
customers’ payment preferences and keep information payments, ecommerce and digital sectors. He was previously executive
up-to-date for seamless service. By removing friction from vice president for product and innovation at international payments
the claims process, insurers build trust and foster long- solutions provider Network International. He also held leadership posi-
term relationships with their customers. tions at such key payment organizations as Barclaycard, Elavon and

Worldpay. At fintech payments company Cashflows Paul is responsible
Streamlined claims processes also allow insurers to invest for leading the product proposition, strategy and commercial go to
more in customer service and personalized engagement.
This improved efficiency enables insurers to focus on market delivery functions of the business. Contact him via LinkedIn
meeting customer needs, ultimately driving loyalty. at www.linkedin.com/in/paul-clarke-890735. For more information
about Cashflows, visit www.cashflows.com.

33