The way that insurance companies manage and payout claims is changing.
Claimants are demanding faster approvals and instant access to funds. Studies show that 75% of claimants want to instantly receive claims payouts for faster funds availability.
But traditional outdated and manual approaches to managing and paying claims aren’t up to the task.
Printing, signing, and returning forms via mail, e-mail and fax is slow and frustrating.
Systems required for managing and paying claims are frequently poorly integrated.
Paper checks sent through the mail can become lost or fall into the wrong hands.
Reconciling paper checks is a time-consuming process for insurers.
Wire transfers are extremely expensive.
Insurers cannot afford the cost and delays of labor-intensive claims payouts processes.
Additionally, insurers must find a way to meet claimant demand for faster payment. It can take an insurer seven to 10 days to process a single check for a claim payout.
Traditional Automated Clearing House (ACH) transactions can take one to three days and require insurers to collect and store bank routing and account numbers. And same day ACH is limited by banking cutoff hours.
Emerging technologies for digital document workflows, e-signatures, and instant payments using Mastercard Send are making it easier for insurers to manage and pay their claims.
Here’s how it works:
This digital approach can be integrated into any insurer’s existing claims management processes for policies covering life, property and casualty, travel, and worker’s compensation.
The combination of digital document workflows, e-signatures, and faster payments gets money into the hands of those who need it – faster and easier than traditional paper-based methods.
Disbursements are delivered with ease.
Insurers achieve greater efficiencies.
The process is seamlessly integrated with an insurer’s core systems.
The process helps ensure legal and security compliance through best-in-class security tools, multi-level transaction controls.
By digitizing claims payouts, funds can be available to recipients within seconds – depending on the receiving institution – and the claimant can have 24/7/365 access to their money from any device.
The Hawaii Employers’ Mutual Insurance Company (HEMIC), Hawaii’s largest provider of workers’ compensation insurance is using this approach to fully digitize its claim management processes. Each claimant uploads their documents, which go through a fast, secure, and compliant workflow. The claim is approved for payment or flagged for additional information. Claimants are instantly notified of claim payment instructions and select their preferred method for instant payment. According to HEMIC, the speed of these payments is critical in times like these.
In the past, processing benefit payments was a long and costly process for HEMIC. By digitizing its benefit payments, HEMIC expects to reduce its costs by over 50%. What’s more, providing customers with immediate access to their funds is a lifeline during the economic slowdown.
This approach is appealing across industries and organizations. Digital document workflows, e-signatures, and faster payments can streamline any process that requires approving requests and transferring funds to individuals or multiple parties.
Government. Accelerate the delivery of tax refunds or disaster relief payments.
Education. Streamline student financial aid and deposit refunds for student housing.
Healthcare. Effortlessly reimburse prescription co-pays and rebates to pharmacies.
Digital document approvals and payments deliver a compelling ROI for any application.
Policyholders and other customers expect more from the companies they do business with.
Manual, paper-based approaches to document approvals and payments are no longer enough.
Transform the way your organization manages documents and makes payments.
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