Insurance Claims Payments as a Service: A Primer
Insurers make a lot of claims payments. It’s an expensive process — not just in terms of the physical costs of printing, paper, and postage, but also human beings are needed to answer questions, manage accounting, and oversee reconciliation. It’s a very non-strategic backroom process. The fact that you can make a payment doesn’t suddenly differentiate you from other insurers. Indeed, the one thing that unites every insurer in every country is the need to make claims payments. And so, for many years insurers have treated payments as a back-office process focusing purely on the minimum required basic processes of printing checks and reconciliation.
An increasing number of insurers are questioning the overall costs of handling payments. Rather than modifying their software systems in order to provide new capabilities, they’re deciding to outsource the entire process.
Claims Payments-as-a-Service (PaaS) is an alternative that insurers can use to manage this essential function without putting their own employees at risk — often resulting in reduced costs and improved services.
This primer explains what PaaS is and how it typically works. It describes the features to look for when selecting a provider and provides a listing of some of the providers that are active in the insurance marketplace.