What is the problem?
Activating a new customer policy is a cumbersome process that requires multiple document exchanges. This process is inefficient and creates a lot of operational pains for insurers. Yet, insurers are still requesting potential customers to print, fill, sign, scan, and email back a form before actually selling the policy. The complexity and length of activating a policy put customers off, increasing the likelihood of customers postponing this time-consuming task, or even dropping out.
Dropout rates are a big issue in Insurance because the Customer Lifetime Value of an Insurer is roughly 20x more than that of an eCommerce merchant. It is therefore a significant risk to ask customers to do so much just so they can buy a product. Especially when customers are used to speedy and seamless processes that are very much common in eCommerce, and want that fast and easy experience from other industries as well.
How do we solve it?
The most convenient and efficient way to onboard customers into a payment journey is using Payment Link or Pay-By-Link. Pay-By-Link is a link that customers get via SMS or Email. Once customers click on it, they are directed to a secure online payment page. Then, customers are prompted to add their payment details and submit them. They don’t have to go through lengthy website checkouts, nor messy document exchanges with the Insurer.
With Imburse’s Pay-By-Link solution, Insurance customers take on average less than a minute to activate their policies, from the moment they receive the link. Using this payment solution brings a wide range of benefits for insurers. Insurers get policies activated much quicker and the dropout rates are reduced by up to 50%. They can also move away from On Account payment methods to Direct Debits, for healthier cashflows. Equally important, local insurance brokers, whose brands are often the decisive purchasing argument, can be kept in the payment journey. Ultimately, customers receive a quick and seamless payment experience, which improves satisfaction rates.