Instacart, Netflix, Zoom. It’s hard to imagine our lives without the companies that provide digital experiences and services so we can continue with our everyday lives amid the pandemic.Technology
Almost overnight, in-person, paper and manual processes became obsolete, forcing industries like insurance to embrace and reprioritize digital transformation across all business functions at an accelerated speed and as a new reality, rather than just an out-of-reach goal.
Yet, despite advancements in digital payment technologies and offerings, there still has been minimal adoption across the insurance landscape when compared with other industries.
Even before the pandemic, the majority of customers preferred instant payments, but just 11% of insurance claim disbursements were paid instantly last year while 52% were sent via paper check. Within P&C, carriers mail paper checks for more than 75% of their claim payments, which can take weeks even without the recent U.S. Postal Service delays.
The most obvious reason to ditch this antiquated, siloed and inefficient approach for a digitized payments process aligns perfectly with insurance carriers’ core focus: their customers.