Automated Payment Processing System for Insurance Companies in Salesforce

May 28, 2024 | visibility 167
TABLE OF CONTENT

Table of Content

Do you know that 67% of insurers use online payments as their primary investment method (source: Exavalu)? This is due to the convenience it offers your customers to choose a plan, schedule a transaction, and ease the payment process. 

With this increase in digital payments, insurance agencies have necessitated this way of investing. But everything that comes with pros has some cons. Thus, online payments in the insurance sector come with a few challenges. 

But don’t worry; we have solutions for those challenges. 

In this blog, you will get all the answers to your insurance industry-related challenges. Let’s get started! 

5 Major Challenges That Insurance Companies Face in Payment Processing 

Payment processing Challenges for Insurance-Companies

1. Legacy Payment Systems and Manual Processes 

Automated Payment Processing Systems are new and many insurance businesses that are still reliant on traditional infrastructure and systems often deal with slow payment processing issues. As a result, their systems fail to cope with modern payment systems, resulting in increased downtime.

The outdated infrastructure supports manual working processes that consume a lot of time and effort to process the transaction. 

This is not only a con for the business but also for its customers, as it hampers customer satisfaction. According to Bnymellon, more than two-thirds of insurers consider digitized payments an important way of transacting an investment. 

Not just this, it increases the chances of errors and incurs additional costs. This poorly affects predictability and visibility throughout the payment cycle. 

2. Security and Compliance Issues 

Insurance agencies leveraging online transactions are often worried about security and compliance issues. 

They fear acts of data breaching, fraud incidents, network hacking, and much more. 

Looking at the example of the Australian health insurance company, Medibank. It suffered a massive data breach in October 2022. The credentials were stolen from a user who has privileged access to the bank’s infrastructure. Further, those credentials were sold into the dark web and were used to access their clients’ sensitive data. 

This resulted in 200 GB of data extraction by the culprits, which included the personal details of 907 million of Medibank’s customers.

Security issues like this can significantly impact the system and give unauthorized access to unwanted third parties, damaging the company’s reputation and demeaning trust between them and their customers. 

3. Poor PolicyHolder Attrition 

As we have already discussed, working with an outdated infrastructure system causes slow processing. As said by Bnymellon, in the digitized ecosystem, consumers consider traditional payment methods an old-fashioned and obsolete artefact of the past. 

It causes the claim process to stretch, hampering the customer experience. This can lead to customers not renewing their investment due to increased dissatisfaction. 

4. Integration Complexities 

With the increasing adoption of digital payments among customers, the demand for different payment methods has also increased. However, if their favourite payment option is missing, they might not transact at all. 

A report by Analyzify shows that 11% of customers do not finish their checkout process if they do not find their preferred payment method. It might incur a significant revenue loss for your business! However, catering to all the customer needs might create integration complexities. 

5. Limited Resources 

Insurance agencies dealing with primarily insurance aspects and not tech might not have resources like men, money, and infrastructure to build their payment systems. 

A study by Clearly Payments states that 99.7% of businesses in the USA are small businesses, and among them, 80% are solely run by the owner. This statistic highlights the limited resources for building in-house automated payment processing systems. If they indulge in such activity, their other important tasks might get hampered. 

However, insurance companies don’t want to miss out on the advantages of advanced payment processing. For the same reason, we have got the perfect solution for you ahead in this blog. 

How Can Insurance Agencies Challenges Be Transformed into Solutions Through an Automated Payment Processing System? 

Insurance Companies payment challenges and solution

To transform these challenges into feasible solutions, you can leverage online payment processing systems that streamline your payment flow and help you serve your customers better. 

Let’s see how! 

1. Provides the Latest Infrastructure and Updates 

A cloud-based payment management system offers a modernized infrastructure with the latest features and functionalities. 

It eliminates the need for and cost of setting up on-site infrastructure. The cloud provider is responsible for rolling out all the necessary updates and new features. With this, your maintenance costs as well as your infrastructure costs reduce, helping you save a lot of money and get the most out of your platform. 

2. Offers Compliance with Latest Regulatory Standards and Robust Security Practices

Online payment processing technology offers compliance with the latest regulatory standards, like PCI DSS (Payment card industry data security standards), AML (anti-money laundering), and data privacy regulations. 

These compliances ensure: 

  • Security measures for storing, transmitting, and processing the cardholder’s data.
  • Protection from fraud detection 
  • Know Your Customer protocol helps verify the authenticity of the customer.
  • User data privacy 
  • User data rights 

It offers strong security measures, including protection from fraudulent transactions, security breaches, and unauthorized access. Moreover, tokenization is one such measure that helps encrypt the card details so that no other party can view and misuse them. 

3. Increased Payment Speed and Predictability 

With a payment system like this, you get features like instant and scheduled payments that help you receive payments instantly and without any worries. 

The power of automation helps to speed up the processing of payments and eliminate errors as there is no manual intervention. 

The versatile scheduled payment functionality allows you to receive payments from your customers at a particular time that you decide. With this, your system is not loaded up with transactions, and the receiving process is streamlined. Thus, you get prompt account crediting. 

Also, if you work on subscription-based insurance plans, you can utilize the recurring payment processing feature

4. Integration with Multiple Payment Gateways 

A payment processing system is perfect only when it allows multiple payment gateway integrations

But why do you need to have more than one payment gateway? Well, the more payment options customers get, the more they can transact! 

A particular payment gateway might offer a debit or credit card payment system, but miss out on Apple Pay or Venmo. What if your customer wants to transact through these missing options? 

Or a payment gateway might work in one country and not in another; this can also hamper your customer experience. Thus, you need a payment processing system that allows the integration of multiple payment gateways. 

5. Catering the Limited Resources Challenge 

Why hire, train, and incur costs to build a payment processing system when you can acquire it from Salesforce AppExchange?

Look for an app that is easily integrated with your existing system and offers functionalities and features that cater to all your challenges. One such versatile application is ChargeOn

Know more about ChargeOn

Along with the above-mentioned benefits, you get more. 

  • Notifications for card expiration and missed and failed transactions
  • Send payment request links to your customers.
  • Reports and dashboards help you look deeply into your data and gain insights into it. 

How Did an Insurance Agency Prosper After Implementing an Automated Payment Processing System into Their Business? Understand with Realtime Example

Think of an insurance agency, XYZ Insurance Co., that offers a range of products, including policies for automotive, home, and life insurance. 

When they started, the product offerings were limited to life insurance, but as they grew, they added policies for automotive and home. This helped them cater to a wide range of audiences, ultimately growing their customer base. 

However, this growth hampered the payment management of the business as it still leveraged traditional methods and infrastructure. This hampered their customer experience and satisfaction level. 

Moreover, they required a solution to cater to the diverse investment needs of their customers, manage premium collections, claim payouts, and streamline other financial transactions. 

After implementing a payment processor, XYZ Insurance Co. was able to process diverse investments and payments 75% faster than before. This helped the business streamline its payment processes, providing customers with a seamless and secure experience. 

With the versatile functionality of online card payments, customers could make one-time and recurring payments through their credit or debit cards, secured by tokenization. Moreover, the company wanted to process payments of different categories on alternative days. 

For the same reason, they activated the scheduled payments feature in the payment processing solution. With this, they set alternative days to receive payments for life insurance, home, and automobiles, releasing the stress and confusion over bulked transaction histories. 

XYZ Insurance Co. wanted to look into their investment data differently for the products they were offering. Reports and dashboards enabled them to look into transaction volumes and monthly and daily transaction counts. 

As the payment processor supported multiple currency payment processing, the business was able to reach a global market without incurring any additional costs. 

With so many benefits this system brought for the insurance agency, their revenue multiplied by 4%. 

Since implementing the payment processing software, XYZ Insurance Co. has seen a significant improvement in customer satisfaction and a reduction in payment-related issues. The company has also experienced cost savings and increased operational efficiency, enabling it to focus on growth and expansion.

Conclusion 

Payment processing technology in the insurance sector is of utmost importance. 

Tackling such a bulky and large volume of transactions is not an easy game, so you need an efficient solution. As already discussed above, ChargeOn is one such solution that helps you with all your payment processing needs

Insurance Companies payment processing through card machine CTA

It is a 100% Salesforce native application that integrates seamlessly with your platform and guarantees payment success. 

It is available on the Salesforce AppExchange marketplace. Search ‘Salesforce payments’ and there you have it! 

Download ChargeOn From AppExchange

To integrate it and get the most out of this payment processor, you can consult Cyntexa, the proprietary owner of ChargeOn. Their experts help you with all your requirements, and if you have custom provisions, Cyntexa is there to help. 

Frequently Asked Questions

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What is the Payment Method in Insurance?

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Differences Between Automated Payment Processing Systems and Payment Gateways.

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How to Find the Best Payment Processing System For an Insurance Company

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