The Advantages of Collecting Insurance Payments Digitally

Many people continue to pay their insurance premiums with paper checks. In spite of this method’s longstanding popularity, paying by check comes with added complications for insurance companies and customers alike. The advent of new technologies means that people are implementing new and better options for sending and collecting payments across a range of industries. In the insurance industry in particular, innovators are hard at work developing robust digital platforms capable of supporting the specific payment needs faced by insurers and their customers.

Risk Factors and Mitigation

Even though checks have been used as a standard payment method for centuries, they can be a magnet for issues. In the best of cases, a lost or misplaced check could result in a loss of service due to nonpayment. The worst-case scenario, however, can be far more detrimental to one’s financial wellbeing. When checks are stolen or fall into the wrong hands, thieves gain access to sensitive banking information such as one’s routing and account number. This level of financial theft can severely damage a person’s credit.

With this potential for risk, it’s important that insurance providers seek out and implement digital methods of accepting insurance payments. Digital payments empower policyholders with a range of options to pay for their insurance, allowing them to select the payment method that works best for their needs. Rather than only having payment by check or ACH as an option, a digital payment plan can encompass payment methods such as credit cards or mobile payment platforms.

Streamlined Operations

In addition to mitigating risk, this makes it easier for insurers to collect payments and streamline their back-office operations. Digital platforms automatically and securely process payments and deposit them directly into the payee’s account. Utilizing this safe, secure, and seamless method of accepting payments means that insurers can spend more time focusing on the thing that matters most: building strong relationships with their customers.

Payment Solutions from IPFS?

If you’re looking for ways to implement digital payment methods, IPFS is here to help. For over 45 years, IPFS has provided insurance premium financing for businesses of all sizes, and our solutions alleviate financial burden for business owners and provide insurance agencies with a catalyst to reach a broader audience of businesses. IPFS’s One Platform approach combines premium financing, payments, eSignature, document delivery, and storage capabilities. This suite of services streamlines operations, shortens the sales cycle, improves customer experience, and fosters business growth.

IPFS solutions empower customers to:

• Increase overall premium finance levels and streamline the premium financing process.?
• Reduce time spent collecting payments and optimize average collection periods.?
• Increase income through premium financing activity and bolster working capital.?
• Streamline payments, accounts receivable and accounts payable processes.?
• Create a better insured experience.

To learn more about IPFS about our One Platform of services, visit www.ipfs.com/one.