Group life insurers looking to maintain a competitive advantage are turning to electronic billing to avoid the back-and-forth billing adjustments with their customers that are traditionally part of group programs. In his report E-Billing: A Strategic Necessity for Group Insurers, Celent Communications senior analyst Matt Josefowicz says e-billing currently has a 30 percent adoption rate among group life insurers, but he expects it to reach 80 to 90 percent in the next three to four years.
Forward-looking insurers are seeing this is where the industry is headed, says Josefowicz. By sending electronic bills to group customers, adjustments can be made more effectively than with a paper bill, where changes and corrections have to be done manually.
Of course, if all group life customers paid the insurer as billed, the urgency to change to e-billing would not be there. The real need is relieving the pain points of list billing, Josefowicz says. List billing for group products has a lot to do with roster management. If you are a group insurer, a benefits insurer, or even a workers comp insurer, your relationship with your customers is dependent upon their employee roster, and that changes frequently. The most important changes involve terminations. Thats the single biggest pain point in list billing, he says.
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