Almost half of all consumers (46%) are frustrated with lengthy insurance claims processes.[1] According to a 2023 study by J.D. Power, the average claim took 22 days to resolve, more than four days longer than in 2022, and a week longer than in 2021. Delays for multiple claims were even worse.[4] According to Lloyd’s of London, today’s loss-funds model faces a big challenge: delays in claims processing. Bottlenecks during the claim payment process prevent faster payouts, which end in increased costs and customer dissatisfaction. [2]
Paying a claim as soon as possible is in everyone’s interest. It usually costs the insurer less to process a claim faster, and speed satisfies the customer. Some companies even send out adjusters with checks so that they can make a settlement as soon as possible. The offer usually goes something like this: “I can give you this much money now, or you can go through a long claim process. You may not even get more than what I’m offering today.”
A paper check sent in the mail can take over 5 to 7 business days to arrive and two or three days for the check to clear. Processing needs to happen quickly because a lot can happen in that span of time. A payment solution that integrates with the company’s PAS insurance software can prevent claim processing from dragging on and opening up the insurer to lawsuits and larger settlements.
More than half of claimants (51%) hired an attorney and received a higher payout than what was initially offered. The speed with which an insurer pays a claim is of the utmost importance because 85% of claimants are approached by a lawyer after an accident, 60% by more than one. [1]
A comprehensive P&C insurance software will create a more efficient workflow and pay claims before claimants seek counsel.
What Is DisburseCloud?
DisburseCloud is a digital payment disbursement platform that allows recipients to choose their preferred payment method via a secure link. It manages claims payments, refunds, payments to third parties and agent commissions. It is an automated payment solution with a strong focus on the insurance industry. DisburseCloud allows MGAs and carriers to brand the payment experience and disburses payments quickly and securely, reducing wait times and incidents of fraud.
DisburseCloud also allows the recipient to choose their method of payment, including paper checks as well as direct deposit to a bank account, a debit card or a digital wallet. To make a payment, the insurer simply sends a payment link to the email address of the claimant, much like a Zelle payment. DisburseCloud also offers printing and mailing of paper checks.
Processing needs to happen quickly because a lot can happen in that span of time.
Disbursement
Disbursing claim payments to recipients is simple. Updating recipient information and tracking the status of the payment are effortless tasks.
Transactions are secure with encryption and authentication processes. Paying customers quickly and based on their preferences will help retain business and save money by preventing disputes for larger payouts.
DisburseCloud provides detailed tracking and reporting for all transactions, ensuring transparency and ease of reconciliation.
Canceling a Disbursement
ISi users cancel/void payments directly in ISi, which triggers an API call to DisburseCloud—no need to manually enter UUIDs.
Sending Paper Checks
Sending paper checks is still an option that many carriers and MGAs and payees prefer. Modotech’s ISi can do the claims processing, and DisburseCloud can print and mail payments for you.
Multiple Party Payment Options Support
1. ISi can conditionally limit the allowed electronic payment modalities to E-Check and Paper Check to ensure security and proper authorization. 2. Additional payees/Authorization parties are included in the API payload to DisburseCloud. 3. DisburseCloud handles the printing and mailing of checks with multiple parties listed as the Payee.Why Partner With Modotech To Use DisburseCloud?
According to LexisNexis, claimants prefer to deal with fewer people and have fewer points of contact. [1] At the same time, they want updates during the claim process.[3]
Resolving claims quickly, notifying claimants of claim status and streamlining the entire policy management process are the most effective ways to retain customers.
In 2023, 41% of insureds shopped for a new policy at least once. Retention rates dropped from 83% to 80%, mainly due to customer dissatisfaction with claim processing.[1] But it’s possible to scale without the costly churn by using Modotech’s ISi and DisburseCloud.
Modotech’s ISi manages all payment workflows: DisburseCloud is the payment delivery mechanism, while ISi initiates and controls the payment process. DisburseCloud is embedded in the ISi interface and only accessed by higher-level users, not agents and other general users.
ISi’s internet-based policy admin system utilizes DisburseCloud’s fast, efficient and secure payment solutions to streamline the claim lifecycle while keeping the customer informed along the way.
ISi can also reduce processing time up to 60% while detecting fraudulent claim behaviors more effectively than manual processes. In addition, ISi provides an easy way to perform tasks with fewer personnel.
As an insurance company grows, it will need to compete with large insurers. ISi will reduce the need to hire more staff. Claims will be automated, processed and tracked digitally.
Legacy systems lack operational efficiency, which can increase operational cost by up to 40%.
Modotech’s Internet Solutions for Insurance (ISi), creates a more efficient workflow and pays claims before claimants seek counsel.
How Does ISi Integrate With DisburseCloud?
ISi integrates seamlessly with DisburseCloud using API calls to transmit data instantly. Crucially, the integration utilizes webhook technology to trigger events back to ISi whenever a payment status changes. This means payment records in ISi are updated in real-time, marking payments as cleared and reconciled automatically without manual intervention. DisburseCloud integrates with ISi’s general ledger (GL) for payment support. Together, they offer a comprehensive system for creating, tracking and managing disbursement records.
Users simply enter and issue payments in ISi. Behind the scenes, real-time API calls send the payment info to DisburseCloud. This is essentially the end of what a user needs to do in ISi. ISi then sends the information to DisburseCloud, and they take it from there. DisburseCloud sends an email to the Payee with a link for them to go through the payment process, where they can select the modality of how they want to get paid. If the payee has any problems or questions, they can call DisburseCloud support.
ISi offers deep customization regarding which payment modalities are offered to different payees. Carriers and MGAs can configure specific allowable payment methods for single claimants, multiple party payments, vendors, and insureds. For instance, a vendor might be offered different payment options than a policyholder receiving a refund.
What’s Email Disbursement?
ISi can send the payment code to contact them via email. DisburseCloud sends the email to the Payee with a link for them to go through the payment process, where they can select the modality of how they want to get paid. If the payee has any problems or questions, they can call DisburseCloud support.
Payment Types and Configurations
ISi supports multiple payment configurations:
In-house printed/mailed checks
Outsourced DisburseCloud printed/mailed checks
Electronic DisburseCloud payments
Beyond Claims
ISi supports DisburseCloud integration for
Claims
Third-party vendor payments
Refunds
Agent Commissions
Learn More About ISi
ISi integrates with DisburseCloud to power the most efficient and cost-saving claims process.
ISi offers an all-in-one insurance software solution to help manage policies, insurance agents and claims. You can also get financial and statistical reports. For more on what ISi has to offer visit this article: Who Needs Property and Casualty Insurance Software? Or simply schedule a free demo today.