Accelerating Innovation and Digitization Across the Insurance Industry
By
👤BNY
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Executive Summary
Insurance leaders are continuing to eye payment transformation as a strategic imperative in 2022 and beyond, as they navigate challenges fueled by aging legacy systems, high check volumes of traditional payables and receivables, as well as increasing client demands for digital services in the post-pandemic economy. According to a recent study, more than two-thirds of insurers now believe that digitizing payments is an important part of their transformation journey.
While insurers look to embrace payment innovation, they continue to face challenges in deploying an effective transformation strategy. The industry must solve for both enterprise-wide challenges as well as distinct priorities across business lines. This long-standing reality has been a significant driver in the industry’s history of conservative approach to next-generation capabilities. In 2019, the industry reported that 52% of all disbursement payments were made via traditional mailed checks, a percentage dramatically higher than that of the 22% reported across all industries.
In a rapidly digitizing ecosystem, traditional payment methods appear to consumers as an antiquated and outdated artifact of the past. In addition to producing a suboptimal experience, they create higher operational costs and slower reconciliation processes. It’s estimated that it costs businesses an average of $6.00 to issue one check.
This includes, the administration required to support check printing, mailing, clearing and reconciling these payments. In addition to cost inefficiencies, traditional payment systems create processing bottlenecks, security vulnerabilities and a lacking client experience. More than 80% of consumers are more likely to work with a business that offers real-time payment options like push-to-card and direct deposit.
As a trusted collaborator to the insurance industry, BNY Mellon is lending our best-in-class perspective and capabilities to accelerate this digital payment transformation. We are confident our effective digital strategy will reshape insurance companies’ treasury services, leveraging a growing suite of solutions and services in the areas of payments and liquidity, with an emphasis on helping clients more easily understand and adopt digital solutions to address these challenges. This paper provides insights into the current payments and overall treasury landscape, while delivering guidance on how providers can integrate these capabilities into and across their organizations in a scalable fashion to expedite their digital transformation
By
👤BNY
