Snap polls reflect questions posed by members of the Celent Executive Panel, a group of C level executives in the insurance industry. This question came about from a member that is taking a new look at the cost of credit card fees and wanted to understand how others are handling them.. This deck provides a summary of the responses to a Snap Poll conducted in September 2022. 41 insurers responded to this survey.
If you are an insurer and are interested in participating and receiving these snap polls, please email kcarnahan@celent.com to verify eligibility.
The question that was posed was:
Background:
This insurer is taking a look at the cost of credit card fees related to billing.As insureds are shifting to credit card payment – and recurring payments, the costs are rising.They’re interested in understanding how others are thinking about these rising costs and whether they’re passing them along to the policyholder.
Questions:
Do you currently accept credit card as a form of payment from your policyholders?
- Yes
- No [Remainder of questions do not apply]
- Not sure [Remainder of questions do not apply]
Do you currently pass along the cost of credit card fees to your policyholders?
If yes, you currently pass along the cost of credit card fees to your policyholders …
Do you file the fees with the states?
- Yes
- No
- Not sure
Do you bill the policyholder directly for the fee or use a vendor service to bill the fee? Select one.
- Bill the policyholder directly
- Use a vendor service
- Not sure
[If you bill the policyholder directly] How do you bill the policyholder / present this? Select one.
- Built into your rates, spread across all policyholders (meaning all policyholders, even those paying through other methods, pay a little bit more to cover these fees)
- Separate line item on invoice
- Fee is presented in the payment channel when credit card is selected
- Not sure
How is the fee structured? Select all that apply.
- Percentage-based (if so, please share the percentage):
- Flat fee based (if so, please share the flat-fee amount):
- Other – please describe
Not sure
If no, you do not pass along the cost of credit card fees to your policyholders …
Do you plan to in the future?
- Yes
- No
- Maybe
- Not sure
