How insurance brokers can use payments to boost their business in 2024

2024 promises to be a dynamic year for insurance brokers, with evolving client expectations, technological advancements, and regulatory changes shaping the landscape¹. To stay ahead of the curve, brokers need to be adaptable and innovative, especially when operating in a market that is predicted to become more competitive with a reduction in retention². With 48% of insurance businesses concerned about complying with new regulations standards and 33% concerned about providing good customer service, it’s clear businesses are looking for methods to meet the guidelines of increased transparency, ease, and value for customers³. One often-underestimated area with tremendous potential lies in leveraging payment infrastructure to improve the customer experience and increase efficiency and productivity.

Simplify payments  

Insurance customers are increasingly seeking convenient and efficient ways to manage their insurance. This includes online policy management, self-service options, and seamless digital payments. With the FCA changes coming into effect this year, brokers must ensure that they are providing their clients with transparent and clear offerings, along with exceptional customer experiences⁴.

By offering a variety of secure and convenient options like integrated payments into online portals, mobile payments, and Pay by Link via email, brokers can provide their customers with a seamless service, embedding payments into the tools and communications customers need to manage and understand their insurance products⁵.

Providing multiple payment methods also makes it easier for clients to pay their premiums on time, reducing the risk and subsequent impact of late payments.

Provide transparency

Offering clients real-time access to policy information and payment history, will foster trust and improve communication, both key aspects of the new FCA requirements⁶. By finding a payments solution that provides real-time data on transactions, you can pass this information on to customers, informing them when their payments have processed or when their pay-outs will be received. Ensuring this happens quickly and reliably is also key, so that customers feel secure and trust that they will receive their funds as soon as possible.

Personalise interactions

Building strong client relationships will be even more crucial in an increasingly competitive market, especially when new regulations are focussed on improving the customer experience⁷. Brokers who prioritise personalised interactions and a positive experience will stand out⁸. Payment data can provide useful insights that brokers can leverage to personalise communications, offering relevant insurance products and services based on historic client needs and preferences.

Automate manual tasks

Many brokers are struggling to find time for administrative tasks on top of implementing new regulations and devoting time to new and existing clients, especially among the approximately 70% of broker businesses that are made up of fewer than 16 employees⁹. By automating and simplifying repetitive tasks like sending invoices, updating payment information, collecting payments, and reconciling accounts, businesses can free up valuable time for brokers to focus on building relationships with clients and growing their business.

Reduce errors

Having a payments provider that offers easy integration of their systems into existing or new business applications to easily automate processes can not only save brokers time but also helps to minimise the risk posed by human error.

Gain valuable insights

Leveraging data generated from payment transactions can provide key insights into client behaviour and risk profiles, allowing for better risk management and product recommendations, along with opportunities for growth.

As technology continues to develop, the possibilities for leveraging payments to build a successful insurance brokerage business will continue to grow. Proactivity will be key to success and by embracing innovative payment solutions and capitalising on data-driven insights, insurance brokers can enhance client relationships and increase productivity and efficiency for their business¹⁰. Through leveraging their payments effectively, insurance brokers can gain a significant competitive advantage and build a thriving business in 2024 and beyond.

At Cashflows, we understand the specific needs of brokers, providing hassle-free payment solutions without the need for integration whilst still providing easy integration options for the businesses that want them. We support brokers to give their customers the payment options they want, including Apple Pay, Google Pay, and Pay by Link, and provide them with the payment management tools and real-time data they need to gain insight and make reconciliation easy. To find out more about how we support insurance businesses, check out our page for insurers here.

Sources:

¹ Browne Jacobson

² Ibid

³ Insurance Times

⁴ Ibid;  Browne Jacobson

⁵ Brown & Brown Insurance 

⁶ Browne Jacobson

⁷ Insurance Times

⁸ Insurance Business Magazine 

⁹ Ibid

¹⁰ Ibid