A claims payment solution that is helping Cornerstone National Insurance grow.

When a growing regional insurance company began making plans for a new claims payment system, little did it know that deadly storms would ravage a wide swath of communities it serves 15 months later — just two days before the new system was set to go live.

That is what happened to Cornerstone National Insurance (CNI), which serves home and auto policyholders in Arkansas, Illinois and Oklahoma.

Kent Peterson, the company’s director of claims, remembers that fateful 2023 weekend well. It began on Friday, March 31, when a catastrophic tornado hit Little Rock and severe storms moved through the state of Arkansas. The next day, Peterson met with an adjuster to triage the expected barrage of claims. Adjusters then went to work, preparing damage reports and cost estimates for approval and payment.

On Monday, April 3, CommercePayments® PreferPay®, the claims payments solution the company had chosen, went live. CNI’s customer service team was ready. After recording the incoming damage reports in the company’s claims management system, they sent claim details to Commerce Bank for payment. The first checks were sent out a day later.

“The process was seamless,” recalled Peterson. “I don’t know what we would have done without PreferPay®. Our team was able focus on the claims and process them faster. We saved ourselves time, but more important we reduced the time from claim to check in hand for our clients.”

One phase at a time.

A former adjuster and seasoned insurance industry veteran, Peterson played an integral role in the automated claims payment system’s selection. Others at the company were also familiar with Commerce Bank, which was already providing merchant and other services to CNI and its sister company, CFM Insurance.

“In addition to getting claims payments into our customers’ hands quickly, we needed a solution that was scalable,” he explained. “If we wake up tomorrow and our company has doubled in size, we need a solution that will grow with us. I know from previous experience that Commerce Bank can deliver on both counts.” He added, “As we grow and invest in new technology, we know we have a financial partner we can look to to helping us deliver the services of a large insurance company, one step at a time.

Everybody wins.

Policyholders aren’t the only ones who benefit from faster payments, said Peterson. “Contractors know how quickly insurance companies pay their customers,” he explained. “They understand that the sooner a customer is paid, the sooner they will be paid.” And that knowledge, he said, can sometimes result in more favorable cost estimates.

CNI’s customer service team also appreciates the time-savings the new system delivers. “Instead of processing checks and stuffing envelopes, they can now spend their time serving policyholders,” said Peterson. “If they want to check the status of a payment, they can simply log onto the Commerce portal.”

“Commerce made it really easy for us,” added Peterson. “PreferPay® is a great solution, no matter where you are in your business, and Commerce has the right people to address our questions along the way. They continue to respond to our questions immediately and have stayed involved as we move forward. All that helped to make our integration successful.”

“Commerce made it really easy for us. PreferPay® is a great solution no matter where you are in your business, and Commerce has the right people to address your questions along the way.”

Kent Peterson
Director of Claims | Cornerstone National Insurance

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