Nearly half see personalization and investing in digital technologies as critical goals in the coming year
VPay, a leading turnkey claim payments platform, released the results of a survey that explores strategic priorities among property and casualty (P&C) insurers related to personalization and digital payment strategies. The survey of 100 insurance professionals who hold management or executive level positions was commissioned by VPay and conducted by Arizent Research.
“To ensure policyholder satisfaction and operational efficiency, insurers must be prepared to embrace a holistic digital payment solution, where outsourcing to a trusted, experienced partner providing a full suite of payment offerings can dramatically improve the claim experience and return on investment.”
Key findings reveal that nearly all P&C insurers have adopted some form of digital payment, although 50% of B2C and B2B payments are still processed on paper. The drivers for investing in these technologies is mixed between the desire to streamline operations and meet customer demands. Notably, nearly half of respondents believe that further investments in digital technologies (up from 34% the previous year), along with strategies that address personalization of customer claim experiences, are critical priorities for the coming year.
P&C insurers overwhelmingly agreed that speed of payment was important to customer satisfaction, with 87% reporting that real-time claim payment is critical or very important. In tandem with this identified need, some top concerns and challenges to expanding digital offerings included multi-department coordination, security concerns, resistance to change and integrating digital platforms with legacy systems.
“Today’s property and casualty insurers can face challenges implementing forward-thinking, consumer-centric digital claim processes without the right guidance developing personalization and digital payment strategies,” said Jeff Brown, president of VPay. “To ensure policyholder satisfaction and operational efficiency, insurers must be prepared to embrace a holistic digital payment solution, where outsourcing to a trusted, experienced partner providing a full suite of payment offerings can dramatically improve the claim experience and return on investment.”
Additional key findings include:
Top benefits to expanding digital payment offerings
- Reduced management costs (47%)
- Better customer experiences (45%)
- Reduced claim handling times (43%)
- Improved customer self-service functionality (43%)
Digital payment processes currently adopted by insurers:
- Direct-to-debit (70%)
- Prepaid debit (52%)
- Automated clearinghouse/direct deposit (45%)
- Prepaid card (43%)
- Peer-to-peer payments such as Venmo or Zelle (20%).