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Insurer's Credit Card Practices: A Snap Poll for the Celent Executive Panel

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21 September 2022

Available Only for Members of the NA Celent Insurance Executive Panel

Abstract

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