Paul Clarke, Chief Growth Officer at Cashflows.
It’s an exciting time for insurance brokers, with evolving client expectations, technological advancements, and regulatory changes shaping the landscape.
But to stay ahead of the curve, brokers need to be adaptable and innovative, especially when operating in a market that is predicted to become more competitive. With 48% of insurance businesses concerned about complying with new regulations standards and 33% concerned about providing good customer service, it’s clear businesses are looking for methods to meet the guidelines of increased transparency, ease, and value for customers.
However, one area that is often overlooked and underestimated for its potential is leveraging payment infrastructure to improve the customer experience and increase efficiency and productivity. With that said, what are some key ways for insurance brokers to stay ahead of the competition?
Simplifying payments
Insurance customers are increasingly seeking convenient and efficient ways to manage their insurance. This includes online policy management, self-service options, and seamless digital payments. With the FCA making tackling insurance products ‘not providing fair value’ (.pdf) a priority, brokers must ensure that they are providing their clients with transparent and clear offerings, along with exceptional customer experiences.
By offering a variety of secure and convenient options like integrated payments into online portals, mobile payments, and Pay by Link via email, insurance brokers can provide their customers with a seamless service, embedding payments into the tools and communications customers need to manage and understand their insurance products. Furthermore, providing multiple payment methods also makes it easier for clients to pay their premiums on time, reducing the risk and subsequent impact of late payments.
Provide transparency
By offering clients real-time access to policy information and payment history, it will foster trust and improve communication. This is achieved by adopting a payments solution that provides real-time data on transactions, meaning you can pass this information on to customers, informing them when their payments have processed or when their pay-outs will be received.
By ensuring this happens quickly and reliably, it means that customers feel secure and trust that they will receive their funds as soon as possible.
Personalise interactions
As with any competitive market it is vital to build strong client relationships, especially when regulations are focussed on improving the customer experience. Insurance brokers who prioritise personalised interactions and a positive experience will stand out.
But payment data can provide useful insights that brokers can leverage to personalise communications, offering relevant insurance products and services based on historic client needs and preferences.
Automate manual tasks and reduce errors
Many brokers are struggling to find time for administrative tasks on top of implementing new regulations and devoting time to new and existing clients, especially among the approximately 70% of broker businesses that are made up of fewer than 16 employees. By automating and simplifying repetitive tasks such as sending invoices, updating payment information, collecting payments, and reconciling accounts, businesses can free up valuable time for brokers to focus on building relationships with clients and growing their business.
What’s more, having a payments provider that offers easy integration of their systems into existing or new business applications to easily automate processes will not only save brokers time but also helps to minimise the risk posed by human error.
Gain valuable insights
Leveraging data generated from payment transactions can provide key insights into client behaviour and risk profiles, allowing for better risk management and product recommendations, along with opportunities for growth.
Helping insurance brokers evolve and grow through payments
Technology is evolving at a rapid pace, enabling boundless possibilities for leveraging payments to build and grow a successful insurance brokerage business. However, proactivity is the key to success. Those that embrace innovative payment solutions and capitalise on data-driven insights, will be the ones to enhance client relationships and increase productivity and efficiency for their businesses. Payments holds the key to helping insurance brokers gain a significant competitive advantage now and into the future.
At Cashflows, we understand the specific needs of brokers, providing hassle-free payment solutions without the need for integration whilst still providing easy integration options for the businesses that want them. We support brokers to give their customers the payment options they want, including Apple Pay, Google Pay, and Pay by Link, and provide them with the payment management tools and real-time data they need to gain insight and make reconciliation easy.