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Speaking at the One, Inc.’s first user group meeting yesterday in Scottsdale, Ariz., CEO Chris Ewing made a blunt statement introducing the vendors new ClaimsPay solution, officially announced this morning: “The check is dead.” ClaimsPay, the newest component in One, Inc.’s cloud-architected ProcessOne payment software, lets insurers deliver claim payouts instantly to a claimant’s bank account, debit card, or prepaid debit card.
Startup insurance carrier Lemonade made news with its three-second claim announced in January; now with the addition of of ClaimsPay to ProcessOne, One, Inc. says it currently offers the only insurance software that includes real-time payment services as part of its payment suite.
ProcessOne uses a tokenization process that allows all payment methods, including check and credit card, to be tokenized without exposing credit card and other financial data. ClaimsPay uses the same tokens that were created for payments and can send claims payments using the same payment rails, ensuring a secure transaction, according to the vendor.
“We’re already the leading provider for inbound payments for carriers and general agencies, and we thought that if we’re taking all this money inbound, why not work on outbound?” Ewing remarked at the vendor’s user group general session. “Checks are not a modern way to deal with customers; they cost from $2 to $4, they are slow, they get lost and require a host of reconciliation and other management issues. In today’s world they make no sense.”
ClaimsPay addresses insurers’ realization that payment processing is becoming critical to their ability to satisfy their customers, affirms Karen Furtado, partner at research and advisory firm SMA (Boston). Insurers have been focusing for some time has been innovating around the inbound payment process, and One, Inc. is now extending that focus to outbound payments, she suggests.
“One, Inc’s ClaimsPay solution provides insurers with the most advanced and flexible method of paying claims in the market,” Furtado says. “The ability to support multiple methodologies—rather than just one or two—brings a transformation change to all involved in the claims payment process including claimants and third parties.”
Providing the Spectrum of Payment Capabilities
Innovation in this area previously would have included maybe one or two of these areas such as issuing a debit card or ACH transfer, Furtado elaborates. “One Inc.’s breadth of capabilities provide every insurer with the spectrum of payment capabilities without sacrificing one over an another,” she continues. “This can be a real customer differentiator in a space that is highly competitive in the area of customer experience.”
“With ClaimsPay we are proud to announce that the claims check is dead,” added One, Inc.’s Ewing in this morning’s announcement. “With real time claims payments carriers can service a much wider range of customers, and they will love that their claims payments arrive instantly. ClaimsPay will also save carriers money by eliminating the need for couriers and wire transfers.”