Insurance companies focused on the customer experience may want to reconsider how they are delivering claims payments.
Data from a digital payments software vendor suggest policyholders would like a choice other than having the payments sent by check in the mail.
The data, from an online survey of 1,188 U.S. adults by YouGov for software firm ACI Worldwide, revealed that of the adults who received a payment disbursement including insurance claims, nearly half (48%) said they feel a choice in how payments are received is either important or very important.More than half (54%) did not have a choice in how they received their payment.
Only 17 percent said they prefer to receive payments through a check in the mail, while 35 percent would prefer a direct deposit to their bank account if given the choice.
The survey also showed more consumers who have received payments did so via a check in the mail (31%), followed by direct deposit to their bank (21%) and credit toward their debit card (14%). In addition, of those who had issues receiving payments (23%), a check getting lost in the mail (39%) was at the top of the list.
Of those who received a payment, 29 percent received it from an insurance company and 33 percent of those filed a claim for a natural disaster that caused damage to their property.
Nearly half of insurance payment recipients received their insurance claim payment as a check in the mail (49%), followed by a direct deposit to their bank (25%) and credit toward their debit card (10%).
“As we enter peak hurricane season in many parts of the country, insurance companies are likely to see more claims for natural disaster-related damage,” said Sanjay Gupta, executive vice president, ACI Worldwide.
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