Though North American property and casualty
insurers are acutely aware of the critical importance that billing
plays in their business, serious shortcomings abound. This
conclusion was drawn from a survey of 61 insurers undertaken by
Guidewire Software, a specialist property and casualty insurance
software vendor.
insurers are acutely aware of the critical importance that billing
plays in their business, serious shortcomings abound. This
conclusion was drawn from a survey of 61 insurers undertaken by
Guidewire Software, a specialist property and casualty insurance
software vendor.
The majority of carriers surveyed agreed that
billing plays a significant role in customer retention. Among large
carriers – those with annual direct written premium (DWP) of over
$1 billion – there was unanimous agreement.
billing plays a significant role in customer retention. Among large
carriers – those with annual direct written premium (DWP) of over
$1 billion – there was unanimous agreement.
Among medium-size carriers (DWP of between $100
million and $1 billion) 87 percent agreed, and among small carriers
(DWP of under $100 million) 71 percent agreed. There was also
widespread agreement that the ability to offer flexible billing
options and a variety of billing programmes to customers would be a
source of competitive advantage. Overall 85 percent of carriers
either agreed strongly or agreed on this issue.
million and $1 billion) 87 percent agreed, and among small carriers
(DWP of under $100 million) 71 percent agreed. There was also
widespread agreement that the ability to offer flexible billing
options and a variety of billing programmes to customers would be a
source of competitive advantage. Overall 85 percent of carriers
either agreed strongly or agreed on this issue.
However, despite general agreement on billing
issues, Guidewire’s survey revealed that only 54 percent of
carriers’ billing systems provided no support for credit card
payments and 69 percent had no support for debit card
payments.
issues, Guidewire’s survey revealed that only 54 percent of
carriers’ billing systems provided no support for credit card
payments and 69 percent had no support for debit card
payments.
Also of significance, 26 percent of respondents
said making enhancements to their primary billing system are so
difficult they are no longer made.
said making enhancements to their primary billing system are so
difficult they are no longer made.
Commenting on the survey, Guidewire principal
product marketing manager Katie Doyle said the findings confirmed
Guidewire’s belief billing is a source of significant but untapped
savings for carriers.
product marketing manager Katie Doyle said the findings confirmed
Guidewire’s belief billing is a source of significant but untapped
savings for carriers.
Guidewire’s findings parallel those of a study
undertaken by consultancy Celent in 2006.
undertaken by consultancy Celent in 2006.
“That survey found carriers struggling with
service-related needs like providing automated printed
notifications; allocating partial payments; accepting automated
clearing house and electronic funds transfers and credit cards; and
supporting electronic bill presentment and payment for agents and
policyholders,” said Celent senior research analyst Jeff
Goldberg.
service-related needs like providing automated printed
notifications; allocating partial payments; accepting automated
clearing house and electronic funds transfers and credit cards; and
supporting electronic bill presentment and payment for agents and
policyholders,” said Celent senior research analyst Jeff
Goldberg.
“Many of these challenges still exist two years
later.”
later.”
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