In the past, businesses and consumers alike were used to receiving their payments in the form of cash or check. However, times have changed and now both groups are expecting to receive their payments faster, via credit card or direct deposit.
Insurance companies who want to stay relevant to businesses and consumers alike will need to evolve with the times and offer innovative and streamlined solutions. One such solution is prepaid debit cards for paying out insurance claims.
This article is going to walk you through 6 reasons why your insurance company should offer innovative payment solutions.
1. Faster Payout Times Create Satisfied Customers
In the past, customers have been willing to wait longer to receive a payout check in the mail. However, expectations have shifted. Customers don’t like waiting for things, especially in a world where just about everything is digitized and fast-paced.
Policyholders do not want to wait a long time to receive a check. Delays between filing a claim and getting reimbursed are quite common. This is a major problem for customers who need to pay for things like auto repairs, medical bills, or home repair.
Consumers and businesses alike shouldn’t have to choose between being forced to wait for a payout or getting their much-needed payouts. A prepaid insurance card can help streamline the process of the insurance claim payouts, putting money in your policy holder’s hands sooner.
This helps speed up the claims process, keeps customers happy, and inspires brand loyalty. Insurance firms who provide best in class experiences generate up to four times more growth and profitability than companies who don’t provide high customer satisfaction.
2. Customers Who Count On Insurance Payouts the Most Need Innovative Solutions
Some customers simply can’t go to the bank and cash a traditional check. They may not have access to cash checks during bank hours, or may have credit issues that preclude them from opening a bank account in the first place. In fact, over 14 million American adults are unbanked, or unable to open or have access to a bank account.
Prepaid debit cards are beneficial as no credit check is required, and funds are available much faster. For consumers who face credit issues and low income, these can be a lifesaver.
Prepaid debit cards can be used anywhere that accepts major credit cards. This means that policyholders can use their cards to pay for gas, groceries, and other everyday expenses. This is a great benefit for people who may not have a lot of cash on hand or who prefer using digital payments.
3. More Consumers Than Ever Are Using Digital Payments
Digital payments are becoming much more popular with American adults. 82% of Americans use digital payouts – up from 78 percent from 2020. More consumers than ever are using digital payments, and this number is expected to continue to grow. By offering a prepaid debit card, insurance companies can make it easier for policyholders to receive- and use- their claims. This can help to build brand trust and loyalty.
4. Reduced Costs
Paying claims by check can be expensive for insurance companies. They have to pay for the paper, the postage, and the labor to print and mail the checks. If a customer doesn’t receive the check or misplaces it, the insurance company is on the hook for issuing a stop payment and reissuing a new check. This can get quite costly over time!
Paying claims with a prepaid debit card can save the company a lot of money. You only need to issue one card, one time to the insured. Insurance companies will enjoy higher cost savings even for a single payout or recurring payments to the claimant.
5. Streamlined Marketing Opportunities
White label prepaid cards can be an incredible marketing tool! Optional branding means that your insurance company can payout claims while creating an effective marketing tool. This can help keep the current customer satisfied, which can result in increased referrals, but also potentially attract new clients! This streamlines marketing and reimbursement, making it a truly efficient tool for insurance companies.
6. Reduced Risk of Insurance Fraud
One of the biggest benefits of reloadable cards is the ability to implement “dynamic spend controls.” Recipients of these cards can only use it to make the payments that the insurer wants them to make. This can help mitigate insurance fraud, especially in the form of filing multiple claims for a single incident.
A Win-Win for Insurance Companies and Consumers
Insurance companies who are serious about remaining innovative and relevant should consider the use of debit cards for claim payouts. Prepaid debit cards are a win-win for insurance companies, businesses and consumers. Customers want to know they are going to be paid for their insurance claim, and that they won’t be waiting weeks for a paper check. Insurance companies want to know that they’re paying out efficiently, offering innovative and cost-effective solutions, and pleasing customers- all without sacrificing the bottom line.
Juice provides prepaid debit cards so you can pay out insurance claims faster, more efficiently, and for less money than traditional solutions. Our innovative fintech products help companies streamline their expense management, enjoy cost savings, and expand customer loyalty.
See Why Over 15,000 Businesses Trust Juice for Payouts
