Spotlight: Effortless online journeys with a smooth payments system

Optimising insurance payments isn’t just about speed and efficiency – there are other benefits too, as Tim Evershed finds out.

Payments systems are a vital part of the insurance transaction for both customer and insurer, so a smooth online journey is essential.

Customers parting with their hard-earned money do not wish to be inconvenienced by delays, cancellations or other avoidable issues.

Good payment processes are fast, frictionless, and people-focused. For some customers speed is of the essence, they will want to complete a transaction as fast as possible and continue with their day. Others will prefer to take their time and speak to an agent to check that their details are correct.

An efficient payments system will reduce costs and help smooth cashflow. It also has the potential to open up new opportunities to upsell and cross-sell products to those customers.

Bad experiences

Poor payment processes can therefore be costly as any hold-ups and errors will frustrate customers. Access PaySuite’s research highlighted the bad experiences customers suffered when paying for insurance.

 

The reputational risk of losing customer data is huge and can have significant repercussions for the insurer.

Critical customer journey

All of this means that removing the friction from payments is a critical aspect of any customer journey.

In theory, taking payments for insurance premiums should be relatively straightforward. A customer receives their quote and makes a payment in one seamless move, whether online, via mobile wallets, direct debits, or over the phone.

In practice, the payments landscape has become more complex, especially for insurers and brokers who need to offer the full suite of one-off, recurring and direct debit payment options.

Rob Denny, head of service delivery, Hiscox UK, says: “Customers value choice and simplicity and that extends to the payment process. Getting this right requires well-trained, experienced people supported by the right technology and I don’t see that changing any time soon.  

“At Hiscox, customers can transact with us online, speak directly to one of the team, and in some cases, they do both.

“New business policies for example, can be purchased and paid for online without the need for human interaction if that’s what the customer chooses. We find this is particularly helpful for our customers who run their own business with busy lives and little time.”

Ease and trust

Successful payments processes in 2024 are predominantly related to two key factors for customers: ease and trust, according to Phil Evans, commercial director at GoShorty.

He adds: “Individuals want to make payments in a way that can be completed quickly and securely, meaning offering a range of options – including digital wallets, credit and debit card payments, or payment services, such as PayPal – is the best way to ensure and foster customer loyalty. In addition, ensuring your payment page is simple and user friendly, with minimal data entry required, is the best way to ensure a smooth process – removing any friction that could discourage conversion.”

Multi-faceted approach

Access PaySuite’s research showed that over a quarter of respondents identified speaking to an agent as one of the most important factors when it comes to paying for an insurance policy. This suggests insurers must have a multi-faceted approach to customer service – online or speak to an agent if required.

The human/online blend is incredibly important, with an expectation that online services will continue to grow.

Rob Denny, Hiscox UK

Denny says: “Sometimes a payment becomes a little more complex – perhaps there are multiple policies in place or they’ve encountered an issue online. That’s when human interaction becomes more important and we have a dedicated team of payment experts in our York-based contact centre that help with this.

“Payments are generally made on an auto-renewal basis which helps ensure there are no gaps in cover and customers have the option to choose the date of their direct debit payments which are interest-free with no time-consuming forms to fill in.”

Diverse preferences

The most successful insurers will always recognise the need to adapt to the current market trends and customer expectations. With customers having a diverse range of preferences and needs, with a marked need for convenience, it’s imperative that insurers consider the human/online blend in their practices.

Evans says: “Depending on the type of insurance, some insurers may have to lean on the ‘human’ side more heavily, but it’s widely recognised that an online approach is becoming more popular, improving accessibility and reach. As such, the human/online blend is incredibly important, with an expectation that online services will continue to grow.”

Making the switch from online to human seamless for the customer is becoming easier as technology develops and dedicated providers offer businesses the functionality and capabilities to introduce new services. Initiatives such as real-time chat mean that customers are only a click of a button away from call help.

Evans adds: “While some businesses are more reluctant to offer this journey, it’s imperative that the option for call help is available such as we offer at GoShorty. It’s also important that modernising the approach should not be the end of tried-and-tested customer service options – such as phone calls – as this could alienate some groups.”

Significant challenge

Digital exclusion presents a significant challenge for the insurance sector. For some customers, the barrier lies in unfamiliarity with digital tools, while others may lack reliable internet access or simply prefer more traditional methods of managing their policies.

Meanwhile, the rise in chatbots, powered by AI, means there is a danger that firms could lose the human touch around online payment assistance.

Cleverly designed virtual assistants offer value by delivering a high-quality, high-speed service.

Connor Fleet-Chapman, Staysure

Jimmy Williams, CEO, Urban Jungle, says: “It is such an important part of the journey that we wouldn’t want AI guessing your payment details or personal information. The phones give us a very structured discussion with everyone and the operator has full control over what they input or don’t input.”

However, insurers like Staysure are taking the opposite approach by attempting to harness the capabilities of AI to deliver a human-in-the-loop unique experience through a digital colleague called “Susi”.

Connor Fleet-Chapman, AI product owner at Staysure, says: “Susi will be a conversational virtual assistant that works with and alongside our colleagues helping to answer customer queries and support them on their online journey. Her sole purpose is to enhance the online experience and bridge the online-to-human gap providing a useful mechanic to service customers in a 24/7, 365 capacity.

“Previously chatbots have come with a certain amount of frustration and despair which was often the outcome of many of the early and poorly designed AIs that most of us will have encountered at some point. But cleverly designed virtual assistants offer value by delivering a high-quality, high-speed service, without the need to wait in a queue or pick up the phone.”

Peace of mind

The demands of insurance customers are evolving all the time driven by their experiences in other sectors, such as retail, which are continually raising the bar to drive sales.

Williams says: “There’s a lot of work that insurers need to do around payments whether it is new business, renewals, moving house or changing cars. That world has really come on in the past 10 years with some really innovative payment providers who are doing some really good things.”

For insurance businesses, whose policies may offer peace of mind but are rarely something consumers really want to buy, it is even more important that barriers to sale are removed. This is where automation can play a vital role in reducing the impact on staff and internal operations while supporting a smoother customer journey. 

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