Value: Insurance companies move towards real-time claims payments
One of the main demands of insurance consumers, instant claims payments are on the way to becoming a reality in the world. However, this depends on the existence of a real-time value transfer infrastructure in the country, such as Pix in Brazil, brings Valor Econômico.
In the US, payments are made through credit card networks and through the infrastructure of financial institutions, in addition to the possibility for the customer to choose digital platforms such as PayPal and Venmo, as explained by the CEO of payments insurtech One Inc., Ian Drysdale, during a panel on payments at InsurTech Connect (ITC), in Las Vegas, this Wednesday (21). The expert also mentioned the future FedNow, which will be the American version of the Brazilian Pix.
At the same event, the partner and executive director of partnerships in the payments area of J.P. Morgan, Ray Nazloomian, stated that “about 70% of insurance customers would switch brands if they could have a faster digital experience in receiving claims.” According to the expert, the possibility of making payments in real time exists for both insurtechs and incumbent insurers.
Liberty insurer’s experience shows that it is important to offer options to the customer as to how he wants to receive the value.
The CEO of One Inc. added that insurers live in the same world as digital companies in various industries. “So consumers want experiences that are like the ones they have with Netflix or Amazon,” he said. “That means being able to work in this world,” he added.
Part of that experience, said Drysdale, is offering multi-channel payments. “Globally there is a shift towards real-time payment systems. The insurance has to be able to pay the claim in less than 24 hours and even minutes.”
According to him, this type of solution involves the possibility for the customer to choose how and where he wants to receive the money. “Insurers need to be able to send the claim to a debit card account, but also to credit cards or digital wallets,” he said.
According to J.P.Morgan’s Nazloomian, even companies with very old legacy systems are able to implement instant payment solutions. “Companies just need APIs [protocols for connecting applications and systems],” he pointed out. “Banks and payments companies have focused a lot in recent years on developing an ecosystem of APIs and it is really important to make these platforms easy to connect, whether for insurtechs or large insurers.”