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Most property, casualty insurers pay 50% of claims via paper

Monday, August 30, 2021 — 12:49:10 (EDT)

PLANO, Texas--(BUSINESS WIRE)--VPay, a leading turnkey claim payments platform, today released the results of a survey that explores strategic priorities among property and casualty (P&C) insurers related to personalization and digital payment strategies. The survey of 100 insurance professionals who hold management or executive level positions was commissioned by VPay and conducted by Arizent Research.

Key findings reveal that nearly all P&C insurers have adopted some form of digital payment, although 50% of B2C and B2B payments are still processed on paper. The drivers for investing in these technologies is mixed between the desire to streamline operations and meet customer demands. Notably, nearly half of respondents believe that further investments in digital technologies (up from 34% the previous year), along with strategies that address personalization of customer claim experiences, are critical priorities for the coming year.

P&C insurers overwhelmingly agreed that speed of payment was important to customer satisfaction, with 87% reporting that real-time claim payment is critical or very important. In tandem with this identified need, some top concerns and challenges to expanding digital offerings included multi-department coordination, security concerns, resistance to change and integrating digital platforms with legacy systems.

“Today’s property and casualty insurers can face challenges implementing forward-thinking, consumer-centric digital claim processes without the right guidance developing personalization and digital payment strategies,” said Jeff Brown, president of VPay. “To ensure policyholder satisfaction and operational efficiency, insurers must be prepared to embrace a holistic digital payment solution, where outsourcing to a trusted, experienced partner providing a full suite of payment offerings can dramatically improve the claim experience and return on investment.”

Additional key findings include:

Top benefits to expanding digital payment offerings

Reduced management costs (47%) Better customer experiences (45%) Reduced claim handling times (43%) Improved customer self-service functionality (43%)

Digital payment processes currently adopted by insurers:

Direct-to-debit (70%) Prepaid debit (52%) Automated clearinghouse/direct deposit (45%) Prepaid card (43%) Peer-to-peer payments such as Venmo or Zelle (20%).

See the full report here.

Methodology

The survey was commissioned by VPay and conducted by Arizent Research during April 2021 and included 100 individuals working at P&C insurers of all sizes. Qualified respondents hold management positions in claims, finance, and technology/operations functions. The survey encompassed a blind data collection effort.

About VPay

VPay® delivers better claim payment experiences. As a part of Optum, VPay offers the insurance industry’s only total payment solution and is backed by the strength of Optum Financial. The company equips insurers with configurable, next-generation digital solutions that streamline every aspect of the payment process. Workers’ compensation, auto and property insurers, health plans, dental plans and third-party administrators trust VPay to design solutions that reduce costs, drive higher ePayment adoption, boost efficiency and improve retention by increasing payee satisfaction. For more information, visit www.vpayusa.com.

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information: bankcardlife.com?orid=33533&opid=1 .

Source: Company press release. end of article

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