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June 16 2020 | Karen Furtado

The hot temperatures of summer are kicking in around the US, and we can see that it is not just the outside temperatures that are escalating. As we take the temperature of digital transformation in the market, there is one area that is quickly rising from “warm” to “red hot.” That is the focus on digital outbound payments in claims. Since February 2020, the pace of digital transformation has accelerated beyond what we even thought fathomable. COVID-19 has been a truly horrific event, but it has brought clarity about the areas that are urgently in need of a change from a digital transformation standpoint.

Outbound PaymentsSMA recently published findings from their latest market pulse survey, entitled P&C Tech Plans in the COVID-19 Era. The report reveals that the focus on digital outbound payments is truly accelerating, with 81% of personal lines insurers and 57% of commercial lines insurers moving forward with investments in the area of digital payments. 

In January 2019, I wrote that this was an area that was positioned to explode. The focus on enhancing the customer experience was pushing P&C insurers forward as they strove to improve claimants’ satisfaction. The digital payment process possessed the potential to provide operational improvements, especially when focused on efficiency. The flexibility around payments became the target of many critical initiatives.

Fast forward to May 2020. When we went into lockdown, we quickly realized which activities required intervention – those activities that required people coming into the office to print paper checks to be sent out to their customers and third parties. As we reflect on digital transformation, it becomes obvious that this is part of the low hanging fruit – something we can modernize fairly quickly by means of the plethora of vendors with various solutions that are available in the market today.

New opportunities to transform into digitally based companies are accelerating. There is great opportunity to focus efforts on quick wins in red hot areas – such as adopting a digital focus on outbound payments.

Join SMA and TDI on July 15th for a first-of-its-kind industry event that showcases the capabilities of digital payments and how vendors are bringing these capabilities to life.


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To learn more, please contact:
Karen Furtado
Partner
Strategy Meets Action
978.239.2741