INSURANCE: STREAMLINING WITH A2A PAYMENTS

#1: Access to data

Data is the single most valuable commodity¹ in the business world today, but many insurers aren’t using it effectively. That’s why 70% of Insurance companies² are increasing spending on data management this year. Good data management begins with collection. Overwhelmingly, insurers rely on pdf forms and phone calls to gather customer information, which is slow, unreliable, and difficult to process later.

#2: Subscription renewal

The majority of Insurance customers pay for their plans using either bank transfers or direct debits. With the former, there’s a persistent risk of missed payments and lapsed subscriptions. With the latter, if the first transaction is insufficiently secure issues can arise later to disrupt the payments process. For the minority of customers who pay with debit or credit cards, expiration dates mean there’s a regular opportunity for subscriptions to go unrenewed.

#3: Customer experience

Poor customer experience is the number one cause of churn for insurers. With 26% of people citing it as their reason for switching providers, and 48% pointing to a specific instance of bad service, it has a bigger impact on retention than cost or even the coverage itself. Consumers want faster claims, more personalised offers, and a better digital experience. But with inefficient data collection, manual underwriting, and inadequate security protocols, insurers will struggle to meet their needs.³

#4: Lack of automation

With an overreliance on disparate data sources and legacy systems, many Insurers are only automating around a fifth⁴ of their operational processes. This slows them down, and makes them more prone to human error, with an impact on everything from customer service and retention to regulatory compliance. Some areas of a traditional Insurance business will require significant overhauls to allow for automation, but in others—like payments—operations can be significantly improved with very little effort.