It is without a doubt that technology has become a significant part of our daily lives. The ability to purchase goods and services with ease has contributed to a great expansion of the online marketplace. As consumers are becoming more reliant on online channels for goods and services, businesses are shifting towards a more digital approach to fit the current lifestyle.
Keeping up with the digital trends
Conventional businesses like insurance companies are a bit more complex when it comes to digitalization. Insurance, both life, and non-life are sensitive products that require attentiveness. When the terms and conditions of insurance are extremely detailed, humans are preferred over machines because of their ability to provide direct consultation and connect with customers.
Currently, many insurance companies operate by building personal rapport between the insurer (agents), and the policyholder (consumer). On many occasions, the customer’s purchasing decision depends heavily on the relationship established with a personalized agent. The chart above indicates that insurance purchasing is still preferred to be done through direct human processing. Once the insurance has been purchased, policyholders generally feel more comfortable when they're a phone call away from discussing inquiries with a familiar agent.
The spread of technological reliance
As industries recognize the importance of an online marketplace, many businesses are shifting their sales to become more digitalized. Although conventional businesses such as insurance are yet to become fully digitalized, they have started to adopt new technological features to enhance the efficiency of their workflow and business models. Investopedia estimates that between 2019 and 2023, the global insurtech market will grow 41% annually. For insurance companies, this means converting traditional paperwork for applications, premium calculations, and collecting claims to be online.
Payment gateways act as a bridge to connect the merchant with the customer when transactions are involved. In this digital age, customers are expecting effortless ways to make payments through their mobile devices without the need to fill out long forms and boring paperwork. Merchants, on the other hand, are looking for technological features to make their job easier by improving the efficiency of collecting payments without having to worry about security risks. Look no further, payment gateways are here for this very reason. They provide flexibility by offering multiple payment solutions to suit the customer's need while helping merchants collect payments faster and more securely. On average, insurance companies that have adopted Omise's payment solutions grew their payment volume by 20% per month with almost no fraudulent transactions detected.
Let's have a look at how you can take your insurance business online in just 4 ways by adopting Omise's payment solution.
Normally before payments are due, insurers will reach out to remind the policyholder that they have an upcoming invoice. This is usually done manually by a phone call or letter form. Through advanced payment solutions, insurers can now improve the efficiency in collecting payments by simply including a payment link within a notification message. The links payment option has proven to receive a higher volume of same-day payments because policyholders can complete the transaction on any device through the received link. This means more on-time payments for customers and less effort in collecting payments for the insurer. Win-win.
Many insurance companies already operate through an internal application or a system that is originally designed for the workflow of agents. Integrating a payment solution such as Omise will simply enhance collecting and managing transactions without disrupting the original process. Once integrated, agents will be able to collect data and monitor transactions live from any device through a single dashboard. Whenever a transaction fails, the dashboard can pinpoint the reason for the failed transaction. For example, the credit card used has reached its spending limit or the OTP was incorrect. Agents then can guide the customer through a solution to ensure that the transaction is processed. In addition to helping merchants monitor and identify transaction issues, Omise's payment solutions are designed to reduce the risk of fraud while improving customer experience.
Paying for large insurance plans at once can be expensive. Through a payment gateway like Omise, we offer solutions that give policyholders the option to split their payments into smaller amounts. Payments over 3000THB can be paid in installments through Thailand's major credit cards. Through the installment plan, insurance companies receive the payment in full and policyholders can opt for a higher insurance plan due to the flexibility given.
In the past, insurers waste time and resources when collecting the policyholder's premiums and by processing the claims manually. With an option to save cards, policyholders can store their card details securely and set up automated payments whenever invoices are due. Whether it is renewing their insurance annually or paying premiums monthly, allowing policyholders to automate their payments can help maintain long-term customers and reduce operational costs for the insurer.
Interested to explore how Omise's payment solutions can help power up your insurance business?
- Tips on shifting from paper-based to digital