How to Use QR Codes for Invoice to Direct Debit Transitions for Insurance

Insurance premiums are one of the most vital financial commitments, demanding regular attention and quick settlement. Failure to meet policy premium deadlines can lead to policy cancellation and loss of coverage, resulting in potentially severe consequences. Timely payment of premiums is crucial not only for clients seeking continued coverage but also for insurance companies relying on a steady cash flow to sustain operations. 

Despite the importance of timely premium payments, both clients and insurance providers often face challenges due to the lack of automated insurance payment solutions. Many insurance companies still rely on traditional invoicing methods, manually generating invoices and sending them out for payments. On the other hand, clients manually complete payments each month. This approach not only leads to late payment fees for clients but also introduces inconsistencies in cash flow and creates administrative burdens on insurance teams. Errors in sums or reference numbers further worsen the situation. 

Luckily, recognising these challenges, an increasing number of insurance companies are turning towards recurring payment solutions since they facilitate seamless and automatic payment processing, eliminating the need for manual invoice generation, distribution, and monitoring. In this article, we will explore how insurance companies can smoothly transition clients from traditional invoice-based payments to the efficiency of direct debit. This transition not only streamlines processes but also has the full potential to enhance overall operational efficiency. So how can you easily convert invoice clients to direct debit? The answer lies in QR codes. 

Why insurance companies need recurring payment solutions

Now that we know the problems caused by manual invoicing and payment settling we can focus on the benefits brought to insurance companies by recurring payment solutions:

• Predictable revenue: recurring payments provide a steady and predictable stream of income for insurance companies. This stability helps in planning and managing operational expenses effectively. 
• Reduced administrative burden: Automated billing processes eliminate the need for manual invoice generation, distribution, and payment monitoring, This significantly reduces administrative workload, allowing teams to focus on other tasks. 
• Improved customer retention: Thanks to the convenience offered by automated payments, policyholders face a lower likelihood of missing payments and therefore the average customer lifetime value is higher. 
• Cost optimisation: Automation leads to cost savings by minimising the manual handling of invoices, payment handling and associated paperwork. This contributes to a more cost-effective and efficient billing process.

➡️ Head to our step-by-step guide on transitioning invoice clients to direct debit. 

How to transition clients to direct debit with QR codes

Transitioning clients from traditional invoice-based payments to the efficiency of direct debit may seem a bit challenging. However, with the right approach and tools, it can be a smoother process than expected. 

If the majority of your clients receive monthly invoices, leveraging QR codes can be a game-changer. Integrating personalised QR codes into your regular invoices is a practical and effective way to facilitate this transition. 

By adding QR codes to your printed invoices, you empower clients with a choice in their payment process. They can continue settling their insurance premium manually or, with the scan of a QR code, seamlessly proceed to an online checkout for automated payments.

Don’t worry about the effort needed to sign up for recurring payments since the user experience is pretty straightforward. The efficiency of this process is enhanced by the personalised nature of Waytobill’s QR codes. Each QR code is uniquely tailored to the client, automatically filling the online checkout with their personal data from the insurance company’s system.  This speeds up the whole process since the client doesn’t have to manually introduce personal details, instead, they simply check if all the information is correct. 

After viewing the order summary and confirming personal information, the client proceeds to payment methods where they can choose the method they wish to proceed with. When choosing direct debit (Autogiro or AvtaleGiro), the client is redirected to log in to their BankID account so that they can confirm their identity and payment choice. With our account lookup feature, clients can effortlessly choose the desired account from a list, avoiding the hassle of entering lengthy numbers. 

➡️ Learn all about direct debit for insurance companies. 

How to transition more invoice-based insurance clients to direct debit?

While the process of transitioning clients to direct debit is straightforward, the part that may take more time and effort is convincing them to do so. While some clients may understand the benefits of switching to recurring payments, others may be sceptical about the switch. Increase your chances of convincing clients to switch their preferred payment method by the following techniques: 

1. Educate clients: Begin by informing clients about the possible transition to direct debit and clearly explain the benefits, such as reduced administrative burden, no need to remember deadlines, and timely payments. 
2. Highlight QR code convenience: emphasise the simplicity of using QR codes for payments and highlight that scanning the QR code eliminates the need for manual data entry, making the process quicker and error-free. 
3. Update invoices: integrate QR codes into the existing invoice format and place them prominently and provide clear instructions on how to use them. 
4. Provide detailed instructions: include instructions on how to use QR codes to set up recurring payments. Offer support channels (phone, email, chat) for any queries or assistance during the transition. 
5. Utilise email campaigns: send out targeted email campaigns to invoice-based clients to explain the transition. Include visuals of the QR code, its location on the invoice, and a link to instructional materials if you have them.

By combining these strategies, insurance companies can not only implement a smooth transition to direct debit but also increase client understanding and acceptance of the new payment method. This proactive and educational approach ensures a successful shift, benefiting both the insurance provider and the clients in the long run. 

Would you like to find out more about our payment solutions for insurance companies? Head to our blog full of tips for handling insurance payments or contact us in case of questions!