In its latest report 'The Race Toward True Digital Payment Experiences: The Digital Transformation of Premium and Claim Payments in 2022 and Beyond', SMA explains the current state of premium and claims payments evidencing that while insurers are striving to deliver true digital payment experiences, many are still operating with outdated processes that do not meet the needs of today's consumers.

Tailored" digital payment experiences

New preferences brought on by the pandemic and a more digitally connected world require insurers to reimagine the payment experience. Within premium payments, this means offering policyholders the ability to manage how they interact with their insurers and control payment management and notifications. The goal should be to expand payment types and access options to give policyholders greater control of their experience.

On the claims side, while it is more difficult to establish a fundamental digital interaction, insurers have a huge opportunity to improve operational efficiency and reduce costs. This includes establishing digital interactions that go beyond the delivery of payments for claimants, agents, claims adjusters, vendors and other third parties.

"For both premium and claims payments, speed and convenience are paramount. Payment acceptance and delivery must be real-time, and capabilities must give customers the power to create tailored digital payment experiences that best fit their needs, from how they want to transact to how they want to communicate with their insurers", the report notes.