Instant Issuance (On-Demand) Platforms Pay Insurance Claims Faster
The overall market for prepaid cards is exploding, however, when it comes to payments and settlements, many insurance companies are still living in the past. Paper cheques are still the most common form of payment for claims–61 percent of insurance firms still issue paper cheques for claims disbursements–but they bring a whole set of problems and costs.
On the claimant side of things, cheques don’t provide immediate access to funds. Insurance claimants have to wait for the cheque to be produced, then they have to wait for the cheque to arrive in the mail, and then they have to wait for the cheque to clear in the bank account. That is a lot of waiting! Along the way, the cheque could be lost or stolen, which leads to even more time waiting for the cheque to be re-issued. For people without access to bank accounts, cheque cashing can be extremely expensive, with payday loan stores charging high fees. In truth, there just aren’t a lot of positives, and it’s clear that there is a need for an alternative payment solution for insurance claims.
The time to make the switch from outdated cheques to prepaid claims cards is now.
In part 1, we focused on the advantages of prepaid payment cards for insurance claims. Now, we turn our attention to customers who need immediate assistance: customers who needs instant issuance.
What Is Instant Issuance, And How Does It Work?
For insurance companies, instant issuance is needed when claimants require immediate financial assistance, due to an accident or disaster such as a car accident, fire, tornado, flooding, etc. In these instances, claimants need to receive a portion of their settlements before their claim is finalized to help cover any additional living expenses, such as food, transportation, or lodgings. Many disasters can leave victims struggling to support themselves and their loved ones. They don’t have time to wait for a claim–they need help now. With instant issuance, they can help alleviate their immediate problems.
Pay insurance claims on-the-spot and in real time.
Through a Visa or Mastercard-backed prepaid clams card, disbursements can be made immediately, making instant issuance a breeze. Claims can be submitted in real time and funds can be loaded on-the-spot, providing those in desperate need with the funds necessary to survive.
Other advantages of prepaid claims cards include:
- Easy-to-manage funds on a individual or group level
- Limits on how much can be loaded on a card, or where the funds can be spent
- Up-to-the-minute reporting, including details on payments, agents, time, location, etc.
- Effectively manage funds/inventories and automatically refill funds when necessary
- Cards can be modified to fit the specific needs of claimants or insurance adjustors
It’s easy to see why insurance companies are gravitating toward prepaid cards.
Ready to make the switch? Click the image below to check out our new ebook, “Transitioning to Electronic Payments for Canadian Businesses,” where we #KillTheCheque and show you the benefits of switching from cheques to electronic payments, as well as the Top 5 Benefits of Outsourcing Your B2B Payments.
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