5 Reasons why better Insurance Billing should be a top priority
Published on February 5, 2018
In recent months, I’ve written a lot about how important it is to make sure your billing system is modern and flexible. You’ve probably been thinking about it for much longer than that.
The question is – what have you done about it?
Even though 74% of insurers see ongoing sector-wide innovations and can identify hot trends, the majority are not yet considering new forms of improvements to address disruption. (PwC Global FinTech Survey June 2016)
I think it’s common knowledge that if a carrier doesn’t adopt technology which supports the needs of their customers and enhances the customer experience then the carrier is at serious risk of losing those customers.
Using the banking industry as an example, items such as remote deposit capture, emailed statements and online access to historical statements all have greatly enhanced customer convenience, while reducing a bank’s operating costs. The examples are endless.
Billing is the most common touch point that a customer has with an insurance carrier. What happens when an insurance carrier embraces, adopts and implements better billing technology?
1. Cost Reduction
Account inquiry, change of address, online payment and document retrieval are all tasks that customers would rather handle themselves. Self-directed services are one of the most important advantages to an insurance transaction and among the most highly desired by your customers. Broadening self-directed services will reduce the transactional cost of serving your customers without sacrificing the quality of your offering.
2. Rapid Response
In addition to reducing costs, you actually speed up delivery of precisely what the customer needs at that moment. No waiting. Isn’t waiting too long to get what they need one of the main reasons that customers look elsewhere?
“…Companies that offer best-in-class customer experiences grow faster and more profitably. To reach this level, insurers must relentlessly improve customer journeys across channels and business functions." (McKinsey & Company Financial Services, April 2016)
3 Superior Customer Relationships
Nothing destroys a customer relationship faster than a poor communication. If your customers are able to get the mundane tasks accomplished online then, when they actually need to speak with you, your front-line employees are better able to answer the question or solve the issue on the very first attempt, strengthening the bond between you and your customers.
4. Enhanced Product Offering and Increased sales
If your customers like you, they are more likely to buy from you than from someone else. Moreover, if they know you are offering something they need, then the likelihood of a purchase is many times higher. Customers will view your mobile/desktop portal more than any other document, email or website that you provide to them. Targeted offers to individual customers will also demonstrate that you are in tune with their needs and this will yield more sales.
5. Greater Product Innovation
The development of new insurance products is a complex undertaking. The ability to meet the customer demand for flexible payments can make or break a product. Modern billing systems can allow greater payment configuration options. With the right billing option, the right product won’t be hindered by a billing system that can’t deliver the needed payment plan. Release your products faster and with greater payment options that meet the customer demand.
Disruption is occurring every day and at an increasing rate. Customers are there for the taking…or the keeping.
Make sure your billing provides a reason for them to stay.