Insurance companies are under increasing pressure today to improve margins, cut costs and drive revenue. Yet despite being saddled with legacy B2B payments processes that are slow, inefficient, costly and a security and fraud risk, many tolerate the status quo as a way of doing business.
This is a missed opportunity to reduce administrative overheads, lower costs and improve the claims experience for suppliers and claimants.
As Mastercard’s strategic partner, Optal offers a new approach to insurers that’s revolutionising the B2B payments sector, and could help insurers overcome inefficiencies to streamline B2B payments and turn costs into revenue.
Optal’s Virtual Account Numbers (VANs) are automatically generated, 16-digit, single-use numbers supported by the global Mastercard network, and thereby providing an integrated, safe, efficient and global payment process for every transaction.
They offer multiple advantages over legacy B2B payment processes.
Once they receive a VAN, service providers are guaranteed payment. Reconciliation is automatic and immediate, reducing overheads and manual errors.
The VAN can also be personalised and enriched with additional information such as claim numbers to further streamline the process, improve the audit trail and help prevent fraud.
“Many insurance CFOs might still think of legacy B2B payments as a cost of doing business. Together with Mastercard, Optal is turning this notion on its head with optimised claims payments that can save insurers costs, reduce security and fraud risks and improve the supplier and customer experience”
Andrew Downes, General Manager at Optal
“Optal’s preferred status with global card and banking partners lets us minimise transaction costs, and turn cost centres into profit centres. We’re delighted to be working with Mastercard to generate real value for the insurance sector on a global scale.”
”Mastercard is focused on improving how businesses pay and get paid. Together with Optal, we look forward to bringing the speed, security and convenience of VANs and other innovative payment solutions to the insurance sector”