Why insurance agents should adopt electronic payments
Going from pen and paper to e-payments can be well worth it for insurance agencies.
The insurance industry deals with many of the same challenges as other B2B industries. One such challenge is dealing with payments made through checks. This payment method can bog down otherwise streamlined operations, as checks take longer to obtain and process, leading to slower payouts.
E-payments have become increasingly common across nearly every sector, but it’s more complicated for insurance brokers to switch to electronic payments than it is for others, as it’s not as simple as making payments online to complete a purchase. Agents have to set up policies, log those into an agency management system and establish other digital practices, such as e-signatures, to create a fully integrated payment system. It’s a complex process, which is why many agencies and brokers have yet to adopt an electronic payment system.
However, going from pen and paper to e-payments is well worth it. Here’s why agents should adopt electronic payments.
Client experience
E-payment systems give clients a much easier and more pleasant payment experience. In some ways, insurance payments are just like any transaction. If you’re already sitting in front of your computer looking at a bill or invoice on screen, it’s more natural to reach for a credit card to type in those numbers than it is to reach for your checkbook, fill out a check and send it by mail.
E-payments allows clients to make payments on their own schedules. Some platforms offer the option to save credit card information or set up automatic payment schedules. When using a platform like this in an insurance setting, clients will be able to quickly pay on their own terms and on their own time. It’s a more seamless and pleasant experience that feels integrated and in line with an increasingly digital world.
This will also have a direct effect on brokers, and as a result, can improve client relationships as well. Brokers spend too much time chasing down payments, eating up time that could be better spent on fostering client relationships. Brokers don’t like feeling like bill collectors, and clients don’t like to feel like they’re being hounded by bill collectors. When clients can make payments more easily online, they’ll be more likely to complete the process more quickly. That means brokers can improve client relationships to make them feel less like a series of transactions and more like a partnership.
Increase payments and financing
Individuals and businesses alike appreciate an easy transaction experience. A simple payment experience encourages clients to make their payments quickly, improving cash flow for brokers. The ability to pay online may make it easier for a client to select a financing option to pay for their policy. When clients select those financing options, brokers can then make more money from a given policy. It’s important to make financing as easy as possible, which is why electronic payment systems hold such potential for brokers to grow in their businesses.
E-payments can create an environment in which clients enjoy a positive experience, and that spills over into all facets of a broker’s business, increasing cash flow across an agency as a whole.
Streamline internal operations
E-payments give clients the flexibility to make payments more easily and quickly, streamlining the payment process. This client-first approach also provides benefits within a business, as digital payment options encourage agencies to streamline their own internal operations.
When brokers don’t have to chase down payments over the phone or wait for checks through the mail, brokers and administrators will have more time to focus on fostering client relationships and increasing their client base. Time can be a broker’s most valuable asset, and more time can equal more money and a high-functioning business that operates smoothly from within.
While it may not be a simple process at first, once e-payments are set up, it will provide immediate benefits for clients and long-term benefits for brokers. The client, broker and business at large will all feel these positive effects, making it an investment that will prove its worth for years to come.
Mike Furlong (indio@n6a.com) is the CEO of Indio Technologies, a platform that simplifies the insurance application process for brokers and their clients. The opinions expressed here are the author’s own.
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