Claims Payment Portals: Do you know who's touching your money?
Insurance claims payment portals are becoming more and more prevalent – and with good reason. Payment portals offer a faster, simpler way for insureds to get their claim payments while insurance providers save time and money not having to cut and mail checks.
To be sure, claims payment portals are good for the industry. They show that insurance companies are listening to their customers and updating their processes accordingly. But not all portals are the same and it’s critical that insurance companies conduct thorough research into the portals they’re considering.
One of the most important things to ask is, “Who are all the players in the game?” That is, when you partner with a payments portal provider, are they doing all the work themselves or do they have a partner as well?
Many payment portal providers are not banks, but financial technology (fintech) companies who work with a bank, known as a sponsor bank, to provide lines of credit or to send funds through direct deposit or direct-to-debit card. So, while these fintechs may have created their claims payments solution, they aren’t the ones touching your money – their sponsor bank is. And you have no say over who that is. How do you know you can trust the bank they’ve chosen to handle your money?
CommercePayments® PreferPay® link opens to a Commerce page is different. We don’t work with a sponsor bank to handle your money, we ARE the bank that handles your money. And our state-of-the-art portal was developed with input from an advisory council comprised of a diverse group of insurance companies. They shared their pain points and helped us create a solution that gets funds to your insureds faster without increasing the burden on adjusters.
Before you partner with a claim payment solution provider, be sure you know everyone you’ll be dealing with. If they work with a sponsor bank, ask yourself:
- Is the sponsor bank stable?
- What happens if they get bought?
- Who stands behind the money in the event of a security breach?
- Are my assets protected?
- What agreements do I need to sign since I’m technically working with TWO companies?
Learn about giving your insureds the convenient, simple claim payment process they’ve been waiting for.
CommercePayments® PreferPay® is provided by Commerce Bank.
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- CommercePayments® PreferPay® Technology for customers. link opens to a Commerce page
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