HDI Seguros leverages technology and recovers 2.4 million BRL in payment transactions

This is the case of Brazilian HDI Seguros, part of the German group Talanx, the third largest insurance conglomerate in Germany, which has been investing in innovative technologies to improve customer experience. Through digital channels and online services, HDI now facilitates the purchasing and management of insurance products.

The relationship between the two companies was oriented by some business objectives of HDI Seguros: the adaptation to the digital age to meet customer expectations at all points of contact, and the implementation of efficient data management solutions to obtain relevant insights for decision making and improvement of services and processes.

The insurance segment mainly uses a payment recurrence model, with charges that occur automatically on a monthly basis. Thus, it is essential that the payment provider applies technologies to carry out successful transactions, avoiding losses for the company.

That was what Adyen did when we implemented our RevenueAccelerate product, which uses machine learning to increase the effectiveness of payments. This tool automatically tests and optimizes each transaction, learning in real time the preferences of issuer banks, which are constantly changing.

Among the tools used are network tokenization, which replaces payment data with a token to increase security and approval rates; automatic update of consumer card data; intelligent messaging, which adapts the organization of payment information according to the preferences of the bank; and automatic processing retries.

With Adyen's network tokenization functionality, HDI Seguros increased its authorization rate in 3 percentage points, from 88% to 91%. Alone, the automatic update of consumer card data resulted in a 0.66% increase in approvals, which represents an approximate revenue increase of R$ 1.2 million per year. Automatic processing retries contributed to an average revenue increase of 0.20%.

Finally, the combination of these technologies resulted in an approximate increase of R$ 2.4 million per year in HDI Seguros' financial earnings.

Payment technology has been a key element in improving the client experience of HDI Seguros, which has set 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", says Renato Tavares Pinheiro, Financial Director of 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.

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", concludes Renato.