How Insurers Can Use Verified Credit Data for Online Payments

Online consumers can make their purchase with various payment options, like credit card, Apple Pay or PayPal. As a result, insurers feel pressure to provide a similar customer experience, whether it's acquiring a new policy or keeping coverage in force. Unfortunately, this shift in distribution channel and payment options is also increasing the risk of fraud.

Fraud plots are getting more complex, and often involve multiple industries. An insurance investigation, for instance, might reveal evidence of financial fraud. Insurers can fight this fraud with digital identity verification that uses verified credit data.

In addition, the explosion in new payment technologies continues to shape the customer experience. The speed and convenience we get from Amazon, the transparency from Uber, and the control we get from Dell are all experiences that drive expectations across insurance. [1]

Digital identity verification is just one technology that can provide a confident, near frictionless consumer experience. This is especially important as insurers remain competitive and expand distribution channels beyond agents. These online capabilities provide an easier exchange of information for underwriting purposes, enabling alternative distribution channels.[2] With more insurers selling products online, delivering an end-to-end digital payment experience is critical.

Streamlining the customer experience

According to a recent SMA (Strategy Meets Action) report, the insurance industry has reached a tipping point in the payment capabilities available today.  The rise of digital payments and the ecosystem that supports them has combined with insurers’ need for cost-cutting, streamlining and providing new customer experiences. [3] Additionally, the report states:

• 92% of personal lines and 86% of commercial lines insurers expect new payment technologies to transform the billing (inbound) experience in the next three years
• One in three expect a similarly transformative impact in claims (outbound)
• Two thirds of insurers are investing in new payment technologies as a result [4]

According to Coalition Against Insurance Fraud in 2019, property-casualty fraud equals about $34 billion each year, driving the need for digital identity verification.

Insurers must consider the impact new payment technologies may have on insurance fraud.

Payment technology options

There are a variety of payment technologies in the market. Most solutions focus on payment processing. However, solutions like InstaTouch® Pay from Equifax® take the customer experience to a new level. InstaTouch® Pay allows insurers to leverage verified consumer credit data and provide real-time payment options, while limiting risk of card-not-present fraud. As a result, consumers get a more frictionless process, which helps reduce abandonment and inaccurate data entry. Therefore, insurers can streamline the card-not-present payment behavior for consumers by driving toward a one-click payment option. Consumer demands are driving insurers to strengthen their processes, which may include working with trusted partners and data providers.

To learn how Equifax can help you, visit our website or contact us.

 

[1] ‘Digitizing the Customer Experience:  A New Framework’

[2] Background on: Buying Insurance - Evolving Distribution Channels’

[3] ‘The Payment World Explodes:  The Need for Digital Customer Experiences Is Driving Payment Innovation’

[4] The Payment World Explodes:  The Need for Digital Customer Experiences Is Driving Payment Innovation’