In the UK the default setting for online payments services has been PayPal for the last decade or so, although Big Four bank debit card payments are often preferred by the consumer.
Some ground has been gained by ApplePay and GooglePay via smartphone marketing and there has been some take up by younger consumers. But other payment systems are entering the UK market. For insurers and brokers this competition has to be good news as it tends to lower percentage fees per transaction. As inflation bumps up the cost of living there is likely to be more demand for monthly payment plans for car insurance in particular, so cheaper payment onboarding has to be worth looking at.
Here’s the latest from Stripe;
Stripe is helping them navigate this trend with financial infrastructure that reduces friction between insurers, agents, and clients, and scales to embrace new business models and changing economic conditions. Since 2020, the number of companies using Stripe to sell insurance online
has more than doubled, and in the last 12 months alone, insurers on Stripe collectively processed nearly $8 billion in payments.
Modernizing the customer experience
Pie Insurance, a provider of workers’ compensation insurance for small businesses, turned to Stripe to let customers pay directly from their business bank accounts. Using Stripe Billing, Pie built a custom billing solution and doubled its ACH Direct Debit penetration rate to 58%—an improvement that helped reduce payment failure rates and lower transaction costs. Pie also automates its payments collection and reconciliation process with Stripe Invoicing, and benefits from advanced features like smart retries and adaptive acceptance, which help ensure Pie’s customers make their payments on schedule.
“Simplicity is not native to insurance, but having a great distribution model is just as important as having a fantastic insurance product,” David Samuels, chief commercial officer at Pie Insurance. “With Stripe, we vastly improve our customer experience and keep hitting our growth goals.”
Tailoring to client and agent needs
Data integration infrastructure like Stripe Financial Connections helps insurers tailor their offerings to their clients’ needs. NEXT Insurance, a digital insurtech company offering small business insurance, uses Financial Connections to let small businesses conveniently link their bank accounts to handle payments automatically on an ongoing basis.
“Building insurance products for today’s businesses requires an immense amount of time and resources,” said Eric Harnden, vice president of partnerships at NEXT Insurance. “Being able to quickly onboard customer bank accounts with Financial Connections allows us to stay nimble so
we can continue to equip our customers with a seamless, simpler insurance experience.”
Fraud prevention technology like Stripe Radar is increasingly used by insurance providers including Cuvva, Sofía, and Pie Insurance, which integrate Radar into their payments stack to combat evolving fraud threats. In 2022, Radar reduced disputes by 41% across all Radar users. It’s one more way that insurers are doing business differently with Stripe—and thriving as a result.
To learn more about Stripe, please visit our website. Please note, product and feature availability may vary by region and use case.
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