Research shows insurance companies should consider virtual and physical prepaid cards to increase engagement
daVinci Payments released a new national UK study identifying how insurance customers want to be paid, their preferred payment features and how to drive engagement when paying customers. The study, conducted on 25 June 2020, pinpoints how prepaid cards have emerged as the most desired alternative to traditional bank account deposits.
“Prepaid cards are the preferred alternative to engage customers now and in the future. Not to mention, they require less private information to issue, thereby making them even more appealing to consumers by addressing growing concerns surrounding data privacy and security.”
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The outcomes from the national study reveal:
- The majority of respondents said that security and speed are the most important features for insurance payouts.
- Most find prepaid cards a better alternative to direct bank account payments.
- More than 80 percent would welcome a surprise value offer with their payment.
- Two-thirds of respondents would use texted virtual prepaid payments that are activated upon completing a desired behavior like redeeming with a claim partner.
- 82 percent of respondents have some form of insurance.
- When broken down by income,
- 74 percent of respondents who earn less than £30,000 have insurance.
- 90 percent of respondents who earn between £35,000 and £75,000 have insurance.
- 88 percent of respondents who earn between £75,000 and £100,000 have insurance.
- 94 percent of respondents who earn over £100,000 have insurance.
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“With increased connectivity and the importance of speed and security, it is no surprise that people prefer prepaid payments as a direct deposit alternative,” said Tim Pope, senior director of business development, Europe at daVinci Payments. “Virtual prepaid cards are much better suited to meet current market demands for mobile-first speed, security and flexibility.”
“Modernising insurance payouts will support digital transformation, helping insurance companies stay relevant, build a loyal customer base and lay the foundation for future cross-sell opportunities,” added Seb Van Schalkwyk, managing director, Europe at daVinci Payments. “Prepaid cards are the preferred alternative to engage customers now and in the future. Not to mention, they require less private information to issue, thereby making them even more appealing to consumers by addressing growing concerns surrounding data privacy and security.”
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In addition to these findings, daVinci released its Future of Payments UK Study in July 2020 that further solidified the dominance of mobile and online payments. It outlined that people expect to be paid in the same ways they prefer to pay, namely mobile-first, online and in-person, contactless payment. The study found that 67 percent of respondents are likely to do all their online shopping on mobile in the future and majority said mobile is already dictating most web payments.
