Do terms like the Internet of Things, artificial intelligence and machine learning sound familiar? And digital wallets or direct bank transfers? You might not know them but you’re surely already using some of them.
What’s more, we’re also sure some of this technology has made your life and day-to-day routine much easier. When we get used to a good thing, no one wants to go back, or work with companies and organisations that don’t offer the same level of service and usability.
Not all companies, nor all sectors, have realised as quickly that things are changing, that these changes are irreversible and that no one is immune to them.
Perhaps one of the sectors that has been most reticent to get on board with the digital transformation has been the insurance sector. However, it is good to remember another sector that seemed oblivious to the profound changes underway: the banking sector. But it is evolving (and how!) in everything associated with its relationships with clients (omnichannel, using mobile devices, personalised relations and offers, etc.).
FinTech: the time has come for InsurTech
For some time now, reports on FinTech trends anticipated that one line that would be developed would be the insurance sector. And they were right. At Unnax, continuing on in our role as an Open Banking platform that is attentive to market needs, we’ve adapted our APIs to the windows of opportunity that are opening up for insurance companies (in all segments: health, vehicle, life, etc.).
They all have to face new challenges associated with changing regulations, new ways of taking out policies and paying for services, new competitors, etc. Changes are being imposed on how risks are assessed and fraud prevented. As well as strategies to fight defaults on payment. Without losing sight of the fact that, now more than ever, digitalisation requires companies (even insurance companies) to be more agile and watch out for their reputation.
How do APIs help with payments and debt collection?
If we’re talking about the insurance sector, APIs, with their effective integration into corporate websites, can help, for example improve the brand reputation of any insurance company using them. What point in the relationship between an insurance company and its clients can set the business apart? When paying out on a claim. Doing so quickly and securely, and keeping clients up-to-date, helps keep policy-holders happy, increasing their perception of the company and boosting loyalty.
Another time APIs are helpful is in collecting on overdue payments. Here the margin to work in favour of the insurance company is ample. For example, a technological solution that effectively manages overdue payments, increasing the recovery rate and helping drive down DSO (days sales outstanding) benefiting the company’s cashflow. Logically, improving recovery rates will help lower losses due to default (a heavy burden for business accounts). And, it can even stop clients from leaving: with an API that, using information provided on each user, prevents suspension of coverage by quickly detecting (and warning) when the first payment is missed on a policy.
Bank Transfer Engine: make operations faster and easier
At Unnax, we’ve designed a bank transfer engine that, among other advantages, speeds up and automates money transfers, working with different firms, auto-selecting banks and opening up the option for mass payments. And all saving the insurance company from having to pay unnecessary commissions. Furthermore, as soon as the transaction is complete, the app control panel has all the information on it ready for verification.
The engine itself allows the company to carry out a vital task: collecting on past-due payments. Not to mention that the engine has additional utilities: those that come from having real-time access to information. This way, it is possible to see and administer all payments, client accounts, transfers completed, etc.
In a business segment like insurance, having in-depth knowledge of the cycles of your company and clients put a powerful planning tool in your hands. Shall we help you roll it out?