With real-time payments gaining traction, the insurance industry will need to continue to transform its digital capabilities to offer seamless customer journeys. The largest proportion of consumers in the US prefer traditional payment methods for their insurance, according to a GlobalData survey. Tackling pain points in payment processing, including when issuing claims payouts, will improve retention rates.
According to GlobalData’s 2024 Emerging Trends Insurance Consumer Survey, the largest proportion of US consumers (57.5%) prefer paying their insurance with traditional methods such as debit or credit cards. Yet more than four in ten individuals (42.5%) would rather use an alternative payment method, with PayPal (17.1%) and mobile wallets (9.1%) cited as the most popular alternatives. There are also significant demographic differences, with under-35s having a more diversified appetite for alternative payment methods for their insurance—just 10.7% indicated a preference for traditional payment methods.
Go deeper with GlobalData
The recent tie-up between payments network One Inc and US Bank is an example of how the insurance industry can improve payment processing. The partnership aims to improve the payment experience of customers taking out a home and/or life insurance policy. It will integrate One Inc’s Digital Wallet to streamline payments across multiple channels, including debit and credit cards, digital wallets such as Apple Pay and Google Pay, and payment services such as PayPal and Venmo. The platform will allow for instant payments and will work both ways, for paying insurance premiums as well as claims payments. The customer experience is not only defined by consumers having the ability to pay using their preferred payment method but also by the quality of the journey itself. A seamless experience that can reduce, or eliminate, pain points is bound to increase consumer satisfaction. Making a claim is possibly the most critical pain point for consumers when it comes to insurance. The ability to enhance payments by potentially allowing customers to receive payouts in real-time once a claim has been approved will only have a positive impact on policyholders and will lead to improved retention rates.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
Related Company Profiles
PayPal Holdings Inc