Insurance providers are increasingly adopting automated systems to streamline their service and provide their policyholders with a more efficient service. But payments solutions have not kept up with this innovation. The inefficiency in their collections systems is an ongoing drain on operational and financial resources and results.
The insurance industry is highly competitive. Improving efficiency and reducing the cost of payment management – reconciliation and pay-outs – will benefit the business and improve customer service and loyalty. This is an opportunity for InsurTechs supporting the insurance sector.
To address these pain points, Banking Circle has developed a virtual IBAN solution that allows insurance providers and insurtechs to collect premiums and pay out claims more efficiently.
Benefits of Virtual IBAN for insurance providers:
- Fast account set-up – for collection of premiums and first party pay-ins and to fund claims pay-outs
- Instead of relying on references within payment messages, payments can be sent directly to individual designated accounts, meaning there is no delay in reconciling payments
- Ability to leverage the Banking Circle network to make and receive payments instantly
- Payments and FX API connectivity
- Access to an award-winning FX platform via web, tablet and mobile
- Improved payments acceptance, settlement times and reconciliation because payments are made in the name of the insurance provider account holder
- Reduced AML and KYC risk as a result of end to end transparency and clear segregation of funds through dedicated Virtual IBAN accounts
Virtual IBAN functionality:
- No correspondent channel is restricted for payments to and from corporate entities
- Members can only view the master account online and through the API – the virtual accounts cannot be viewed directly
- Virtual accounts can be in the name of the individual insurance provider customers or private individual, or have bulk set of virtual IBANs in the name of the broker or intermediary