Case study
HDI Seguros leverages technology and recovers 2.4 million BRL in payment transactions
Discover how a leading insurance company increased payment efficiency and increased authorization rates.
As insurance companies move towards digitalization, they face challenges similar to those other businesses face. These include enhancing customer experiences, effective data usage, and adapting to new technologies.
This was the case of Brazilian HDI Seguros, part of the German group Talanx, Germany's third-largest insurance conglomerate. They recognized the importance of digitalization and understood that to stay competitive, they needed to begin their digital transformation journey and work with a payment partner that could solve these challenges.
That's when Adyen stepped in. HDI Seguros' business goals drove the partnership between the two companies: embrace the digital era by enhancing payment efficiency and adopting data management solutions that provide valuable insights for decision-making.
The outcome? They've seen a R$ 2.4 million increase in payment transactions. We spoke to Renato Tavares Pinheiro, Financial Director of HDI, to get his perspective on how they achieved this.
Increase payment efficiency for higher authorization rates
In the insurance industry, recurring monthly payments are standard practice. Having a payment provider with modern technology is crucial to handle these transactions and prevent loss for the company.
That’s why HDI Seguros implemented Adyen’s RevenueProtect tool. This tool uses machine learning to enhance payment efficiency, continuously testing and optimizing each transaction in real time based on evolving preferences of issuing banks.
As part of the RevenueProtect tool, they leveraged network tokenization, which enhances security and approval rates by replacing payment data with tokens. This includes automatic updating of consumer card information, intelligent messaging to align payment details with bank preferences, and automatic processing retries. Using these tools together resulted in an approximate yearly revenue increase of R$2.4 million for HDI Seguros.
"The credit card billing processing done by Adyen is very robust and without incidents. In the insurance sector, billing activity is very sensitive to customer experience and journey. The solid process provided by Adyen is very important."
Renato Tavares Pinheiro
Financial Director, HDI
Thanks to Adyen's network tokenization feature, HDI Seguros boosted its authorization rate by three percentage points, from 88% to 91%. By automatically updating consumer card data, they saw a 0.66% rise in approvals, translating to an estimated revenue increase of about R$1.2 million annually. Automatic processing retries further contributed to an average revenue growth of 0.20%.
Improving the customer experience and better insights
Payment technology has been a key element in improving the client experience of HDI Seguros, setting new standards for the market.
"HDI Seguros was one of the first insurers to implement the sending of a link to capture the data of insured customers, providing greater information security, through the partnership with Adyen. This project was a huge success, allowing HDI to become a reference among brokers and competitors in terms of agility, data security and satisfaction of the insured."
Renato Tavares Pinheiro
Financial Director, HDI
HDI Seguros also started using the payment data provided by Adyen to extract insights for decision making.
"Adyen can contribute a lot with innovations that optimize the customer journey, not only in the initial purchasing process but also during the journey, to increase conversion and information transparency"
Renato Tavares Pinheiro
Financial Director, HDI
Maria Isabel Noronha, VP for Account Management at Adyen Latin America, says that the segment as a whole can be inspired by HDI Seguros' good payment management practices. "In this successful partnership with HDI, we have the materialization of all the potential that payment technology is capable of delivering to companies in terms of revenue increase, customer experience innovation and data intelligence. Companies that want to continue to prosper need to rethink the role of payments in their strategies.'' says Noronha.