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Insurance: How to Improve Payment Rates with Intelligent Reminders
Payment reminders can significantly help you increase payment rates for your insurance company while fostering client relationships and cash flow. Read on!
In the dynamic landscape of insurance, where timely payments lead to maintaining financial stability, the synergy between technology and customer communication is crucial. Still, the majority of Nordic insurance companies rely on paper invoices, which more often than not, lead to missed payments, late payment fees, or in worst-case scenarios, cancellations. Hence, more insurance companies are looking into incorporating effective payment reminders, as well as opting for automatic withdrawals. Luckily, Waytobill’s payment solutions and intelligent payment reminders are here to help you increase payment rates and therefore improve volume and retention, and foster stronger relationships with policyholders. Let’s unravel the possibilities of this simple yet powerful tool!
Benefits of payment reminders for insurance companies
Increased probability of invoices being paid
Proactive payment reminders play a pivotal role in boosting the likelihood of timely invoice settlements. That is why implementing a communication process can help you reduce the number of missed payments and cancellations. Payment reminders serve as subtle nudges to clients and can be used to help you emphasise the importance of meeting payment deadlines.
Improved retention and lifetime value
Unpaid insurance premiums lead to the termination of insurance policies and coverage, potentially leaving clients’ unprotected and unaware of the situation. The implementation of timely payment reminders proves to be a crucial strategy for insurance companies to reduce customer churn and uphold the continuity of insurance policies.
Although payment reminders may seem a little bit intrusive, they’re the exact opposite and often foster positive relationships with clients as they showcase the company’s commitment to transparent communication, demonstrating the company values its clients’ time and financial obligations. The lack of such communication could have a negative impact on your customer relationships and cash flow. By proactively communicating payment deadlines, insurers not only keep clients covered and protected but also foster a positive impact on customer loyalty and trust – two fundamental factors in client retention.
Elevated customer satisfaction
As previously highlighted, payment reminders can have a great impact on customer loyalty and trust, as well as client relationships. However, customer satisfaction goes a long way and payment reminders can significantly impact it in several ways.
For example, policyholders who are assured of receiving payment reminders are not worried about missing payments or facing policy termination. This reduction in financial stress positively impacts overall customer satisfaction and may lead to positive word-of-mouth referrals.
Opt for a Multi-Channel approach to optimise payment reminders
At Waytobill, we understand the importance of timely payment reminders for insurance companies and their clients, particularly since a lack of payment may result in the termination of coverage. That is why we developed an intelligent payment reminder system.
With Multi-Channel Invoicing, insurance companies get to deliver invoices through a variety of different delivery channels and optimise costs at the same time. Here’s how it works.
Email with an invoice and payment button
Get started with the most time and cost-effective method – email. Send your invoice as a PDF along with a payment button allowing policyholders to pay directly online with Digital Autogiro. This is also the easiest and quickest way to transition your clients to recurring monthly payments, which are automatically withdrawn on the due date from the client’s bank accounts.
If the invoice hasn’t been paid on the first attempt, resend your invoice through a digital mailbox like Kivra. In this option, you can also include a “Pay with Autogiro” button which allows for moving clients to direct debit.
The third step would be to try and reach your clients through e-invoices, a Nordic notification system linked to mobile banking apps.
The last attempt would be to send your invoice as a traditional paper invoice. This is the least time and cost-effective way but it leaves you ensured that the policyholder will receive a physical copy of your invoice.
Waytobill handles all the distribution channels mentioned above, allowing merchants to fully optimise invoice delivery costs and transition clients to local direct debit methods. By moving more volume to one of our Nordic direct debits, you will not only increase retention but also free your administrative team up repetitive tasks that are prone to human error.
Multi-Channel Invoicing is available in Sweden, Norway, Finland, and Denmark. Would you like to find out more about it? Contact us today!