Innovation

Prioritising payments in insurance

Insurance

Things can go wrong when we least expect them to, and in these moments of need, having quick and convenient access to funds can be vital. So, why are we not talking more about payments when it comes to insurance?

We understand that when customers choose to purchase insurance cover, they expect the experience to be straightforward and simple. They also hope that if something goes wrong they will quickly gain access to the funds they need to get back on their feet. While historically cheques and bank transfers have dominated insurance payments, as customers live increasingly digital lives, delivering a quicker and more convenient payment experience needs to be a priority.

Offering a better payment method when buying insurance could be the difference between a customer completing the payment or abandoning the purchase altogether. Additionally, a recent study found that 58% of customers said the main reason for dissatisfaction is that claim payments take too long to receive[1]. While the necessary checks and approvals have the potential to slow down the claims process, providing a payment option that enables customers to receive funds quickly and easily can help a customer pay for emergency repairs or get their car back on the road.

The simpler and quicker we make the process of making and receiving a payment, the better the customer experience, and with 59% of insurers believing they will face competition from online service providers and aggregators[2], the customer needs to come first.

Throughout our 60-year history, Visa has been committed to giving both consumers and merchants a convenient and safe way to pay and be paid. Insurance is no different. In fact, whether the insurance provider or the consumer, Visa can improve the payment experience, facilitating simple card-on-file debit transactions and real-time payouts, protected by the reliability and scale of our global network. Visa ensures that all of these payments are quick, convenient and protected, and enables insurers to take and disburse payments to one card, not only reducing the risk of fraud, but also significantly streamlining back-office processes.

Above all, we know improving the customer experience takes collaboration: the partnership of two or more companies with a common goal to offer the best experience to their consumers. By working together we enable a customer to hire a replacement car while theirs is being fixed, we help a family to purchase last-minute travel insurance at the airport, and we do all of the above while keeping the consumer safe and protected.

Ultimately, consumers remember the experience they have, whether it is paying how they want to or receiving funds quickly when in need. In a competitive industry where customer experience is the objective, payments should be a priority.

 

[1] Accenture POS Survey
[2] Accenture Global Pulse Survey

Payment technology