ACH payment solutions let insurance companies offer policyholders a safe and convenient way to pay premiums while reducing the administrative burden associated with payment processing. Insurers can manage their risk by debiting policyholders’ banking accounts for payments. They can also deposit settlement funds directly to a policyholder’s account.
- Lower costs. If your business accepts credit and debit card payments, then you’re already familiar with the processing fees that accompany these payment methods. …
- Convenience. …
- Time Savings
- Recurring billing. …
- Faster processing time and no billing fees
- Customers prefer ACH.
- Safety Net for Renewals: If your account is cancelled for non-payment, it may not be re-written because your portfolio’s risk or exposure has significantly increased(claims, driving activity, etc.)
I believe the most important benefit to an insurance customer is #8: Renewals in which a customer has developed some negative activity may get overlooked by underwriting when your payment is on ACH. Too many times, we have dealt with customers that refuse to go on ACH, they forget about paying their insurance installments and the account is cancelled for non-payment.
Once the policy or file has a red flag cancelled for non-payment, it draws attention to the underwriter when we request for the account to be reinstated. When this request is made, the underwriter will look to see if this account has developed any adverse characteristics and if the underwriter finds that this account is unprofitable, they can deny the reinstatement request.
ACH is the only way to go to safeguard your insurance portfolio and practice good risk management!