Traditionally, an insurance policy has come with a mountain of paperwork and plenty of hassle when it comes to paying the premium. With the digital age technology, there is no real need for these antiquated methods. Policyholders are starting to realize that there are better options out there, and insurance providers will soon have no choice but to adapt to these coming changes.
The Insurance Industry Has Been Slow to Adapt to the Digital Age
While people have been ordering food, hailing cars on rideshare apps, and filing taxes online for years now, insurance policies continued to be applied and paid for with physical forms and payment methods. Unlike other areas of the economy, which are forced to adapt quickly or fade away, the insurance industry as a whole is one of the few that was able to hold off from making changes to keep pace with the modern world. [Read about how Insurance UX needs updating here]
In part, it is the mental construct about what an insurance policy stands for that has been holding the industry back from embracing these advances in technology. Such a critical agreement shouldn’t be bought and paid for as easily as you might order a pizza, right?
We respectfully disagree.
The Time Has Come for Companies to Make the Move to Digital
There is no reason that obtaining or paying for an insurance policy should be challenging, cumbersome, or inconvenient. The technology needed to make the process easy and digital is readily available and will improve consumers’ overall experience with insurance.
Huge Policy Packets and Forms are a Waste of Paper and Time
Although sometimes kept out of a feeling of obligation, no one actually needs all of that paper. The majority of insurance packets and records remain tucked inside a drawer or cabinet, never to be opened (let alone read).
Suppose a customer has a question about their policy; they are far more likely to perform an online search or contact their insurance company directly for clarification than they are to dig through piles of forms and papers.
In reality, printing pages and pages of policy paperwork is an old habit that long ago became obsolete.
The Slow Process of Mailing Physical Checks is a Costly Hassle
When it comes to making payments, sending an old-fashioned check through the mail is no longer the most efficient method, nor is it the most reliable method for customers or insurance providers. Checks take time to arrive and are occasionally lost along the way to their destination.
The hassle and fallibility of sending a paper check for payment is just not necessary or practical in today’s digital world, and you’ll find that digitizing the process will save you money as well.
There is No Reason Not to Adopt Digitization
The primary reason that the change to digital hasn’t been made already is not because of a reason holding the industry back, but a lack of reasons to push it forward. There simply hasn’t been enough pressure to advance the technology behind the billing process for insurance companies.
Without motivation to make the changes, insurance companies have remained complacent. However, at this point, there is no real reason not to join the rest of the digital world; because digital documents are just as safe and effective for companies to use and are far more convenient for consumers, the pressure is finally building to make this transition occur across the industry.
Consumers Want Insurance to be Just as Easy as Any Other Online Purchase
In a world where you can get almost anything quickly and easily online, why should insurance be any different?
The Online Payment Process is Easy
Making a payment online or through an application is secure, fast, and easy. Getting the appropriate information from the customer’s bank to the intended destination is a well-established online process in today’s world. It doesn’t really matter if those funds are paying for a pizza or an insurance policy.
Customers expect to be prompted for the appropriate information and can be notified instantly if something is missing or incorrect. An incorrect address or missing digit can be dealt with in the moment so that there will be no reason for delay.
Paying Online is Convenient for Policyholders
When it comes to making on-time payments, it is easy for policyholders to quickly pick up their phone or laptop and immediately take care of the bill.
Removing any friction between the customer and a processed payment, a digital payment process can be conveniently completed anytime and from anywhere.
Online Payments Are Intuitive
There are very few—if any—people in the modern world today who have not processed a payment online. Consumers will be familiar with the process of logging into an account, entering their payment information (or letting it autofill), and clicking submit.
When Looking for a New Policy, Consumers will Seek Out Easy, Online Payment Options
Consumers are not interested in the hassle of paperwork and antiquated payment methods. When seeking out a new insurance policy, they will be drawn to the companies that are making it easy, fast, and convenient with online sign-up and payment processing options.
They will shy away from companies that needlessly hold to antiquated, traditional methods because they recognize that there is no reason to make paying for insurance any more challenging than ordering a pizza.
In time, the companies that refuse to make these changes to adopt their procedures to meet the modern, digital world’s demands will begin to fall behind and eventually fade away. The customers have immense power in these situations: they can choose to support the companies that give them the convenience they want. They can choose to leave behind the companies that refuse to advance along with the modern world.
Genius Avenue Can Help
Consumers want to live in a world where paying for a pizza and paying for insurance are equally convenient and easy. Unfortunately, creating a digital payment system for pizza is slightly less complex than for insurance on the provider side.
Genius Avenue was born in the insurance and benefits industry and our solutions are designed specifically for insurance and benefits. We can handle digital payments, enrollment, and administration, help grow your sales and more. Want to learn more? Click here to speak with an expert.