Billing Changes, Business Impact


Many insurers already provide account billing and credit card payments, but the focus for the near future will be on electronic bill presentment and payment through email, Web portals and mobile applications.


“There really is a lot of focus in providing capabilities to the policyholder that they can use from their mobile devices or from their homes.”


Martina Conlon, Novarica


Insurers that have implemented billing changes report that allowing credit card payments, account billing and equity cancellation have had the biggest business impact. Billing systems that allow for credit card down payments are becoming pervasive, with 65% of carriers surveyed saying they have that in production, with another 15% to 20% planning it over the next 18 months. The use of credit cards for installment payments is less common: 40% of carriers have that in production with another 20% planning to introduce it in the next year and a half. More than half of carriers have account billing and automated rules. The big focus over the next year and a half will be giving the policyholder the ability to pay and receive bills via email, the Web or a mobile device.


Many carriers are focusing on replacing core systems this year in order to deliver these capabilities. Almost 30% of carriers are actively replacing their billing solutions or looking at doing so, many are enhancing what they have, and about a third are in maintenance mode.


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