Through our experience in the payments industry, we have found that consumers desire flexibility and choice when it comes to paying their monthly bills, and these preferences carry over to the insurance industry. Speedpay® Pulse , a recently conducted survey of 3,000 U.S. adults who are responsible for two or more household payments a month, revealed that consumers prefer to pay insurance premiums in a variety of ways, depending on the type of insurance (e.g., auto versus disability) and the frequency of payment (e.g., one-time versus recurring).
Read on to learn what our survey revealed about consumer payment preferences in the insurance industry, and what these findings mean for billers.
Preferred Payment Channel: Biller’s Website
According to Speedpay® Pulse, consumers prefer to make both one-time and recurring payments of insurance premiums through their insurance company’s website. For one-time payments, consumers can simply visit their insurer’s site on a desktop computer or mobile device, pay their premium and move on. However, for recurring payments, consumers often have the capability to create an account on an insurer’s website, save their login credentials and set up email alerts so when their premium is due, they can simply follow a link and click a “Pay Now” button each month.
The one exception: disability insurance. On average, consumers prefer to make their one-time disability insurance payment in-person at a third-party provider, like an insurance agent, and their recurring disability insurance payments through a third-party website. These preferences may be due to the nature of disability insurance and the consumers who rely on it.
So, what does this mean for insurance companies? Because consumers prefer to make payments via the insurer’s website, it’s important that the site is intuitive and easy to navigate. Additionally, for recurring payments, we’ve found that consumers like to have the option to save their login credentials and prefer to receive reminder alerts to login each month and complete their payment.
Preferred Method: Debit and Checking Account Deduction
When it comes to payment methods, the research found that consumers prefer direct account deductions (checking account deductions and debit card payments) for both one-time and recurring insurance payments. Today’s consumers don’t want to spend a lot of time thinking about or making bill payments. A direct account deduction is often automated, allowing consumers to pay their bills on time and get on with their busy lives. Billing companies should be sure that these payment methods are made available to provide consumers with a seamless payments experience.
Bottom Line: Choice is Key
Depending on the type of insurance and the frequency of the payment, consumers’ payment preferences can vary greatly. The best course of action for an insurance company may be to provide a variety of payment methods and channels to ensure the payment process is as quick and painless as possible for both consumer and insurer.
Interested in learning more? Click here to read the full Speedpay® Pulse research report.