Is it time for insurers to reimagine digital payments?

What makes a true digital payment experience in insurance? Although the past few years have been characterized by rapid digital payment options, the real game-changer has been the focus of market leaders to embrace the transformation of the actual payment experience – both for premium and claim payments.

In SMA’s new research report, "The Race Toward True Digital Payment Experiences: The Digital Transformation of Premium and Claim Payments in 2022 and Beyond," SMA explains the current state of premium (inbound) and claim (outbound) payments. What is clear is that although there is a strong effort by insurers to provide true digital payment experiences, many continue to operate with outdated processes that don't meet the needs of today's consumers.

New preferences brought on by the pandemic and a more digital-connected world demand that insurers reimagine the payment experience. Within premium payments, this means offering policyholders the ability to manage how they interact with their insurers and control payment management and notifications. The goal should be to expand payment types and access options to give policyholders greater control of their experience.

On the claims side, while more challenging to establish a fundamental digital interaction, insurers have a tremendous opportunity to improve operational efficiencies and reduce costs. This includes establishing digital interactions that go beyond payout delivery for claimants, agents, claims adjusters, vendors and other third parties.

For both premium and claim payments, speed and convenience are paramount. The acceptance and delivery of payments must be in real time, and capabilities must give customers the power to create tailored digital payment experiences that fit their needs best, from how they want to transact to how they want to communicate with their insurers.

This blog entry has been reposted with permission from SMA.