Innovating payments for Canada's insurance industry

Innovating payments for Canada's insurance industry | Insurance Business Canada

Innovating payments for Canada's insurance industry

This article was provided by Interac

The Canadian insurance industry has a lot to gain from making payments faster, easier, and more transparent.

In a post-pandemic economy, many Canadians are reducing their use of cash and are relying instead on digital payments. A recent Interac survey revealed that two thirds of Canadians believe businesses that fail to adopt digital payments will struggle.

Read more: Helping insurers evolve with modernized payment solutions

The demand for digital payment options will only increase and insurance organizations will need to accommodate this shift in consumer behaviour. Pre-pandemic, day-to-day financial management often involved processes that were paper-based, cheque-driven, and manual.

These methods are typically slow, inefficient, and require businesses to spend valuable resources processing and reconciling payments. The pandemic, alongside changing consumer preferences, has naturally reinforced the need for digitization and moved businesses to lessen their reliance on manual processes to boost overall operational efficiency.

Eighty-three per cent (83%) of finance professionals surveyed by Interac affirm this notion, saying that applying digital transformation to their function is now a priority.

These needs are fuelling demand for innovative business payment solutions, such as Interac e-Transfer® for Business. An enhancement of the existing Interac e-Transfer service, this tool was built to meet the needs of Canadian businesses and offers higher transaction limits up to $25,000 depending on your financial institution.

Fast money transfers with instant confirmation and rich remittance data, allows businesses to reconcile transactions with less paperwork. In other words, it can help streamline accounting processes and accelerate a paperless office strategy.

For insurance organizations this could mean being able to fulfill claim payouts while ensuring policyholders have immediate access to their funds. Insurers could additionally provide interim claims payouts by sending much needed funds to clients impacted by natural disasters offering immediate support for distress.

Digital payment methods also enable policyholders to accept insurance premiums with rich remittance information to reconcile payments and paying broker commissions can be handled in real-time while retaining payment confirmation for records.

Read next: Digital transformation must happen across insurance ecosystem

Eight in ten (80%) of business decision makers surveyed agree that moving from traditional payment options to digital ones will be essential to post-pandemic growth.

Assessing how a business can revamp its payment processes and financial management to become more effective, and relevant to customers with tools like Interac e-Transfer for Business is necessary to equip the insurance industry in a post pandemic economy.

Visit The Know to learn more about how digital payments can enhance business for both insurers and clients.