3 ways to enhance insurance claim payouts for customers

In a digital-first economy, insurers have an opportunity to differentiate themselves by incorporating speed, convenience, and flexibility into customer interactions. One way to do so is by innovating how funds are paid out, using technology to turn a traditionally painstaking process into a simplified digital experience.

Imagine enabling a personalized payouts experience, and doing so in near real time. With just a point and a click following claim approval, claimants can control when and how they are paid – reducing payout timelines, and catering to each claimant's money management preferences. 

To that end, here are three ways digitizing payouts will enhance the claims experience:

1. Maximizing payout choice – According to a recent Carat Insights study from Fiserv, which polled more than 2,200 adults in the United States, only 38% of insurance customers have ever received a payout digitally – and most consumers think payouts via paper checks are the only option. 
By digitizing the payout process, insurers empower claimants to choose how money is received, be that a bank transfer via ACH, onto a debit card, instant issuance of a digital check, or by pushing a payout to digital wallets like PayPal, Venmo or Coinbase.

Payout choice is particularly important because consumer preferences vary widely across customer segments. For example, according to the same study, receiving a payout to a bank account is an experience with which Gen-X and Boomer generations are most comfortable. Meanwhile, Millennials and Gen-Z are more accustomed to using digital wallets and increasingly prefer non-bank payouts. Payout choice allows insurers to drive customer loyalty by enabling a differentiated experience that best fits each customer's preference. 

2. Getting claimants paid quicker – Insurers in the U.S. are beginning to focus on digitizing multiple touchpoints within their claims process – and a digital-first approach to how customers are paid is a critical component of this evolution. 
Leading insurers are already engaged in payout initiatives that have paid out millions of insurance claims digitally. These initiatives, paired with parallel work streams to expedite how claims are reviewed and approved, are enabling claimants to complete the entire claims process (from submission to payout) in less than 20 minutes. By expediting claims from end to end, insurers are able to better support customers by providing funds needed for repairs, medical assistance, or other beneficiary needs in a secure and speedy manner.

3. Enhancing end-to-end experiences – While more choices for receiving money faster is a great value proposition, nothing is more important than bringing everything together within a digital experience that is user-friendly. This can be done by enabling a customer-facing digital payout portal that offers claimants the ability to accept claims funds, and the control to choose how they would like funds delivered. 
How does it work? Once notified by an insurer that their claim is approved, a claimant is prompted to access the digital portal via their personal device, at which point the claimant can opt for a digital payout instead of a paper check. Claimants choosing to receive funds digitally then select from a list of payout options – with a point and a click, funds are digitally delivered to their account of choice. 

Digital transformation is changing how the insurance industry operates and providing opportunities for differentiation among insurers. By digitizing payouts, insurers are streamlining operations while creating better experiences that delight customers.