How digital payments can lay the foundations for a new kind of insurance

The insurance sector is transforming. Faced with major macro-economic, regulatory and societal changes, industry players are increasingly looking to become more agile and responsive to their customers’ evolving needs.

But as AXA UK&I CEO Claudio Gienal said recently, in order to empower people to live better lives, insurers must first put the right foundations in place. This is where payments are crucial.

Insurance is changing

Insurance is a sector unlike many others in that it touches most aspects of people’s lives: from their cars to their homes, their health to their careers, and even their cherished pets. This gives insurers an unrivalled opportunity to help build a better, safer, happier society. And the impact of insurance continues to grow as innovative new policies hit the market, to provide cover for everything from washed-out music festivals to delayed flights.

Much of this innovation is being fuelled by smarter use of data, including AI algorithms, and a recognition of growing customer demands for simplicity, speed and personalisation.

Why payments matter

We’d argue that for insurers like AXA to fulfil their ambition to truly empower customers, they first need to get payments right. Why? Because at a very basic level, you can’t settle a claim without paying a customer or supplier. And you can’t sell insurance without settling a claim.

Yet legacy payment processes are ill-equipped to support the new products customers and partners are demanding — and they also add extra cost, complexity and friction to traditional types of insurance.

This is why we advocate a digital twist on a proven alternative – virtual cards. Using a digital version of the payment cards we all carry can help insurers deliver on the promise of parametric and other innovative products without pushing premiums up. Equally, these seamless, automated pull payment systems can make existing insurance models even better by reducing time-sensitive costs and even generating rewards on each transaction.

A brighter future

Optal is already helping some of the biggest brands in the sector to deliver for their customers by taking risk and friction out of the claims payments process. With a speedy, zero-cost digital payment system that didn’t require it to capture, validate and securely store payee bank details, Allianz was able to launch a new warranty product to cover second-hand cars, for example.

AXA’s UK strategy reminds us of the “noble purpose of insurance” in helping to build a better society. With the right digital payment systems in place, insurers can finally realise this vision and drive value for themselves and their customers.

Contact details:

Bradley Eccleshare
Chief Marketing Officer

M +44 0 7525 929198
T +44 0 20 3892 4928

About Optal Ltd

Optal is re-inventing how payment processes work across complex industries. By stripping payment processes of their customary inefficiency, Optal helps companies boost profitability across a growing number of sectors around the world.

Optal issues Mastercard branded payment products, driving its focus on developing and bringing to market, game-changing payment solutions. Optal’s working capital solution, Invapay, turns underutilised credit lines into a dynamic resource to manage cashflow.

“Invapay” and “Invapay solution” means Invapay Payment Solutions Limited, a private limited company in England and Wales, authorised and regulated as an Authorised Payment Institution by the Financial Conduct Authority under the Payment Services Regulations 2017 which is a wholly-owned subsidiary of Optal Limited.

Talk to us to discover how Optal can add value to your organisation.

Business Development: +44 (0)333 230 1842
Invapay Technical Support: +44 (0)3308 387 490
Press & Media: +44 (0)203 772 8842

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