5 Reasons why insurers
should modernise theirclaim payment process

Claim Payment Process
Modern UK insurance providers arefocused on accommodating the changing
expectations of their customers1 :improving customer service; streamlining
claim payment processes; reducing manual
disbursement methods, and increasing thespeed of claim payment delivery. A digitalpayout solution can help transform all fiveof these areas to meet – and exceed thenew demands.

PAYPAL INSURANCEThe UK insurance industry is feeling thestrain of these new pressures. Insurers
must leverage available digital capabilities
across their entire claim payment
process, especially in the last mile; theclaim payout. Here are five reasons why
digitising and modernising claim payments
should be a central focus for any UK
insurance organisation that wishes to stayahead of the curve.

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1. Keep Up with Changing Demographics
According to The Deloitte Global Millennial Survey 2019,millennials now comprise 49% of the global workforce;the Digital Native demographic is old enough to own cars,
homes, and other insurable assets. Therefore, insurers willneed to develop new online and mobile channels – notto mention digitise their entire claim process, from claim
registration to final payment – in order to help penetrate
this segment. Many millennials are not familiar with paper
cheques; if insurers want their services to resonate withthis demographic, they’ll need to implement new ways
to issue claim payments using more digital payment
methods, such as PayPal in addition to direct to debitcard and bank deposit in the UK.

Millennials now
comprise 49% of theglobal workforce1
2. Improve Customer Satisfaction
With more insurers to choose from and more ways tobuy insurance, companies need to find unique ways todifferentiate themselves from competitors. Consumers
today are accustomed to an exceptionally sophisticatedlevel of customer service. Whether it’s taking anduploading a photo of damages via a smartphone app,or video chatting with an agent, digital initiatives canhave a huge impact on customer satisfaction, and thus,
revenue generation.
Not to mention that Forrester found that over the last
five years, UK insurer customer experience has been
mediocre and narrow – with the vast majority scoring
between 60 and 70 on a scale of 1002. This sets a scene
for an emerging leader who can capitalise on available
digital tools.

PAYPAL INSURANCE

The insurance claim process is crucial to overall
insurance, and customer experience hinges on the fast,
efficient distribution of funds. Improving this process
is therefore one of the fastest ways to help improve
an insurer’s approval rating (Net Promoter Score). Not
only is a digital claim payout process inherently fasterthan the manual distribution of cheques, but it is also
likely to reduce claimant anxieties by increasing visibility
into the payment transfer. Payout tracking tools andtransfer notifications can go a long way to help reassure
claimants and improve their overall satisfaction withyour services.

PAGE 033. Streamline Claim Payout Processes andOperations
Insurance payout processes are often manualand include a great deal of paperwork, follow up
correspondence, manual notifications, underwriting, anddocumentation. All of this administration takes time,
and time is not something that today’s consumers arewilling to endure. In order to kick operations into highgear, insurance companies need to focus their efforts oncreating dynamic and interactive interactions with theirpolicyholders, across all stages of the claim process.
Technology will be required to accomplish thisinteractivity, not only to automate the claim
documentation process and assessment, but the final
claim payout itself 1. Payment disbursement platforms
are designed to help automate and streamline thepayment process while reducing the operating costassociated with payment disbursements.

Payment disbursement
platforms are designedto automate andstreamline thepayment process

PAYPAL INSURANCE

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4. Reduce Claim Expenses andEliminate ChequesInsurers are looking at ways to eliminate any unnecessary
steps from their claim process, including automatingroutine transactions and eliminating paper documents.
Settling a claim by issuing cheques is a slow andincreasingly expensive payment method, not to mention
cheques could easily be lost in the post, a problem that
leads to further costs in reconciliation, as well as a poor
experience for the customer.

To mitigate the overall cost of a claim payment, insurers
are turning to payout solutions that offer centralisedtreasury management tools capable of streamlining andoptimising their claim payment workflow. These payment
platforms give policyholders the option to self-selecttheir preferred claim payment method through web andmobile-first interfaces. While it may be difficult to remove
cheques entirely from your claim payment process,providing payout options can help your organisation
organically transition away from this payment method –and the associated costs.

5. Deliver Fast Claim Payment
With hyperconnectivity defining many UK insurance
customer interactions, it’s no surprise that somepolicyholders have become increasingly impatient.
Traditional forms of claim payouts can take weeks, buttoday’s claimants want fast, if not, real-time resolutions.
Digitised claim disbursement platforms help speed up thepayment process and provide today’s digital generations
increased visibility and transparency into the payment
disbursement.

If you’re an insurer
in the UK, now is
the time to consider
digitising andautomating your claim
payment process

PAYPAL INSURANCE

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About PayPal

PayPal was created over 20 years ago
with convenience, choice, and trust
at its core and unique technologicalcapabilities wrapped around them. Our
insights and innovation have helped
drive growth ever since, not just for ourcompany but for our customers too.
With 32 million active account holders
in the UK, PayPal is one of the nation’s3
most used online payment provider.
PayPal users are 3.8x more likely toconvert and 8% more likely to makerepeat purchases on a website where
PayPal is visible. Moreover, PayPal
increases checkout conversion by 66%4.
As more routes continue to open to
new markets, PayPal has helped toprovide the simplicity and smoothness
that customers and merchants
alike crave and demand. We’re now
establishing ourselves in the insurance
sector and helping organisations
like yours accelerate their digitaltransformation.

PayPal increases
checkout conversion
by 66%4.
Learn more about our solutions for the UK insurers on www.paypal.com/uk/insurance
1
Deloitte: Insurers’ digital business models: How to meet supervisory expectations. 2 https://gemseek.com/blog/best-customer-service-experience-loyalty-insurance/. 3 Statista Global Consumer Survey Online Payment: PayPal brand report in United Kingdom, April 2020. 4Nielsen, Commissioned by PayPal, a study to understand and measure the impact that PayPal has for UK-based LE merchants acrossdi­fferent verticals (e.g., health & beauty, travel, fashion) by Nielsen Media Behavioural Panel of desktop transactions from 13,013 UK consumers who are PayPal users, from October 2019 to September 2020.

PAYPAL INSURANCE

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