The payment trends that are driving digital transformation in insurance
Flexible, intuitive payments are now a top factor when customers choose an insurer. Here’s how leading insurers are using payments to close the digital gap.
Flexible, intuitive payments are now a top factor when customers choose an insurer.
Yet 79% of insurers still believe clunky online checkouts don’t impact the customer experience.The 21% who disagree? They’re seizing the opportunity.
Here’s how leading insurers are using payments to close the digital gap.
1. Turning payments into a product advantage
Customers don’t compare insurance providers to each other, they compare them against the best experiences in retail and fintech where payments are front and centre.
For Gen Z and millennials customers in particular, ‘ease of payment’ rates as a top three decision factor when purchasing insurance. Leading insurers integrate products and payment methods like digital wallets, and prepaid virtual cards—features this demographic increasingly expect.
While these updates may seem complex, leading insurance providers demonstrate the big impact that small changes deliver on customer experience. Without requiring a full system overhaul.
Key takeaway:
Moving beyond checks and outdated processes to flexible payment and payout methods is the first step to unlocking better customer experiences and greater operational agility.
66% of 25-34 year olds prefer prepaid virtual cards to avoid being out-of-pocket during a claim
2. Using smarter payments to fuel innovation
Digital-first insurers don’t just improve customer experience. They look to rich data for added benefits.
With smarter payments technology and quality payments data, insurers can streamline operations, personalize offers, and prevent involuntary churn. Deeper insights allow insurers to deliver on key strategic priorities; stronger retention, better risk profiling, and lower costs.
Even simple upgrades like tokenization can make a measurable impact.
Key takeaway:
Small moves in payments can provide value across the business, from customer engagement to backend efficiency.
76% of insurance professionals say payment processing is core to operations
3. Unlocking insights from other industries
Every insurer is on a unique path of digital transformation. But one mindset shift setting leaders apart is their willingness to learn from industries beyond insurance.
They’re borrowing from retail for seamless CX, subscription businesses for billing models, and fintech for speed and scale.
By reimagining payments as a strategic tool to improve operational efficiency, not a backend function. Insurers can cut fraud, improve service, and streamline reconciliation with better payments.
Key takeaway:
Payment modernization isn’t just a tech project, it’s a lever for long-term business growth.
For any insurance firm serious about digital transformation, payments aren't an add-on; they're the bedrock. If your ambition is truly digital, then your payment infrastructure must be equally native to that digital realm.
Adrian Davis
Commercial Leader of Financial Services and Insurance at Adyen
The digital divide is real. The opportunity is, too.
No matter your starting point, there’s a payment innovation that can move your organization forward.
Ready to see how? Explore the tools helping insurers modernize payments and meet rising digital expectations.