Insurance companies in the UK
appear to be missing out on considerable savings that can be
achieved by adopting direct credits to pay claims and benefits to
customers.
This is the view of Bacs
Payment Schemes, the not-for-profit organisation responsible for
managing Bacs Direct Credit in the UK.
Go deeper with GlobalData
While the Association of
British Insurers reports insurers paid out in excess of £84bn
($135bn) for insurance claims – around £231m each day – Bacs data
shows only £25.6bn of this was paid through Bacs Direct
Credit.
The remaining £58.7bn, noted
Bacs, may have been paid out by less efficient and more costly
alternatives, such as cheques.
“There is clearly a
significant opportunity here for insurers to improve their payment
practices and benefit from the efficiencies and cost savings
associated with Bacs Direct Credit,” said Bacs market sector
manager Dawneth Perry.
“Many companies have put the
emphasis on the efficient collection of monies, which is clearly an
essential action, but in doing so they may have overlooked outgoing
payments.”
