How Digital Payments Are Reshaping the Insurance Claims Experience

The insurance industry is undergoing a significant digital shift as carriers work to modernize payments and claims processing. Trillions of dollars in annual disbursements—often made via paper checks—are being re-evaluated for real-time, digital alternatives. But the road to full digitization is anything but simple. With 50 regulators across 50 states, compliance hurdles and process variations create layers of complexity that insurers must carefully manage.

One Inc. CEO Ian Drysdale explained that many insurers still rely on outdated processes to complete claims, particularly for totaled vehicles or workers’ compensation cases. These situations often involve multiple payees, lienholders, and salvage companies. Coordinating title transfers, debt payoffs, and final payouts can result in significant delays. Drysdale emphasized that small- and medium-sized insurers especially lack the resources to manage these complexities while transitioning to digital solutions.

Digital tools, however, offer a compelling solution. One Inc. currently supports 15 of the top U.S. insurers with services that allow policyholders and vendors to receive payments via their preferred platforms, including PayPal, Venmo, and Mastercard Send. In some cases, carriers have gone from processing 15% of payments digitally to 75% in just one day.

The goal is to deliver on the core promise of insurance—timely financial support during difficult moments. By modernizing disbursements and streamlining the claims journey, insurers not only enhance customer satisfaction but also boost retention and reduce friction. As expectations continue to evolve, so too must the industry’s approach to how, when, and where money moves.