Re-Engineering Claims Payments

Since COVID-19 made its way into the U.S., insurers have been hyper-focused on customer retention. But priorities have shifted since the beginning of the year.

A Celent survey released in January revealed that most companies were confidently readying for a year that would focus on innovation and be characterized by investments in digital claim offerings, client satisfaction strategies and process optimization.

Fast forward to April, when a follow-up survey found that innovation took a back seat to customer retention, process optimization and cost-reduction measures as insurers responded to the 2020 pandemic dynamic.

One strategy remained high on the list: the need for digital transformation, especially in the area of claim payment. A recent Metabank survey found that 42% of consumers would be more likely to stay with an insurance provider that pays approved claims within minutes.

Findings from a VPay report revealed that the majority of policyholders — especially across younger generations — would change carriers to gain access to real-time payment.