Article
Why smarter payments are the next driver of insurance growth
How modern payment solutions help insurers drive customer satisfaction, reduce friction, and deliver long-term growth.
Fast, flexible and secure payments help insurers turn everyday transactions into stand out experiences.
For insurers, every financial interaction, whether it’s a claim disbursement, premium renewal, or policy change, is an opportunity to strengthen customer relationships.
But one element still holds many insurers back: fast, secure, and flexible payments. When done right, payments turn routine touchpoints into standout experiences.
Here are four ways insurers are using smarter payments to elevate CX and drive growth.
1. Instant claims payouts
Fast settlements top the list of what customers care about in the claims process, ranking above omnichannel communication and clear status updates. And the cost of delay is high, 74% of customers who’ve experienced friction are ready to walk.
To ensure customer retention, insurers need to deliver speed and consistency. That’s not easy when payouts depend on policy type, geography, and documentation. But modern payment tech makes it possible.
Solution: Real-time payouts
Ditch the checks and slow bank transfers.
Insurers can now send payouts 24/7, in real time, and let customers choose how they receive their funds. Options like virtual card issuing, account-to-account (A2A) transfers, and customer cards are driving higher satisfaction.
Payout methods that improve CX:
Virtual card issuing: Instantly issue, fund and manage for quick access to payouts
A2A: Direct account transfers in real time
Customer cards: Let customers receive funds to cards like Visa and MasterCard
2. Flexible payment options
More than half of insurance buyers (across all age groups) say mobile apps are the most secure way to purchase policies. And 92% want to pay with cards or digital wallets.
Insurtechs are leading the way by prioritising a variety of payment methods at checkout. It’s how they’re bridging the gap between outdated systems and modern expectations—and building loyalty in the process.
Solution: Digital payment methods
Card acceptance is just the beginning.
More customers now prefer to pay with alternative payment methods (APMs) online, such as digital wallets or direct debit. Insurers that offer multiple ways to pay create smooth experiences and reduce friction at point of sale.
Payment methods that improve CX:
Digital wallets: Secure, convenient and potential for lower fees
Direct debit: Streamlined and lower cost
Want to understand which APMs are gaining ground in the UK? Our guide breaks it down.
3. Transparent and secure payment flows
Only 24% of insurance customers trust providers to protect their data. Fraud, opaque processes, and security breaches have eroded confidence.
AI-powered tools will help fight fraud in the long run. But right now, insurers can signal their commitment to data protection by securing their payment flows.
Solution: Payments fraud management
From tokenisation to pay-by-link, modern payment tech helps protect sensitive data while reducing fraud and chargebacks.
Fraud protections that improve CX:
Pay by Link: Secures over-the-phone transactions
Tokenisation: Keeps card-on-file data safe
Optimised checkout: Reduces redirects and boosts trust
Want to dive deeper into payments fraud trends and tactics? Explore the signals of success.
4. Frictionless recurring payments
Billing mistakes and disjointed experiences don’t just frustrate the customer, they cost insurers business. Over a third (37%) of insurers say payment issues have led to policy cancellations.
Clear statements, real-time payment status, predictable renewal flows and timely communications all help build trust in the long run.
Solution: Payments automation
Optimising insurance payment flows with strong recurring capabilities such as tokenisation, automatic retries, and account updater helps remove billing friction for customers.
Payment automations that enhance insurance CX:
Tokenisation: Keeps returning customers’ payment details secure and ready to use
Automatic retries: Retries unsuccessful transactions at a later optimal time
Account updater: Maintains accurate card details in real-time
Ready to power a new era of insurance CX?
Payments aren’t just the final step in a transaction, they’re the start of a lasting relationship.
From fast claims to frictionless billing, insurers that invest in modern payments win customer trust, increase retention, and unlock new revenue. Partner with a platform that understands the insurance space, backed by the technology to transform it.
See how Clearcover and Adyen are shaping the future of insurance CX.