How to use Airwallex for automated insurance payouts

As technological advances sweep across the financial services industry, the insurance sector is taking steps to keep pace. Many businesses are moving all – or large parts – of their operations online and updating outdated systems with simpler, more efficient platforms and processes.

Growing numbers of tech-savvy insurance customers are driving this shift, using online channels to handle their finances. Armed with more information and insight, they can easily shop around, compare a range of products and prices, and find the most suitable provider in a few clicks. When it comes to insurance, they want comprehensive solutions with apparent benefits – including transparent and personalized policies with fast, hassle-free claims processing.

Technology is transforming the insurance industry

Given industry challenges and changes, insurers recognize that sticking to outdated methods could be risky.

Recent research shows that 64% of eCommerce users are willing to jump ship and take their business elsewhere after having a less-than-favorable online experience. For insurance customers, limited policy choices, complicated application procedures, and lengthy claims processes are turn-offs that can push them to choose more agile and customer-focused competitors.

As insurance companies rush to modernize, building a strong network of embedded insurance and partner offerings is more important than ever. According to McKinsey, the payoff is clear for those willing to embrace a digital future: automation can reduce the cost of a claims journey by as much as 30%.

With these developments underway, insurance companies are focusing on quicker, simpler claims settlement and payout methods.

Why insurance claims are ripe for overhaul

As they work to solve common claims pain points, insurance companies face the following challenges:

• Heavier workloads. Traditional claims processing involves significant administrative work, leading to increased operational costs and slower turnaround times.

• Risk of fraud. Methods like physical checks or electronic transfers are more vulnerable to fraud. Advanced security measures add layers of cost and complexity.

• Customer dissatisfaction. When payouts drag on or lack transparency, customer loyalty and satisfaction can suffer, hurting a company’s reputation and impacting future business.

For claimants, issues include:

• Waiting for payments. Delayed claims processing can frustrate claimants and cause financial strain, especially after a property loss or a medical emergency.

• Hassles with checks and clearances. Depositing checks at the bank and waiting for funds to clear is an inconvenience many want to avoid.

• Limited choices. Traditional payout methods offer little flexibility on how or where funds can be accessed, making financial management harder for ‌recipients – especially with costly cross-border payments.

How Airwallex helps simplify insurance payouts

With Airwallex, online insurers can speed up payouts, enhance customer service, and improve back-office operations.

Here’s how Airwallex Issuing tackles common claims challenges:

1. Once a claim is approved, the insurer can log into Airwallex and request a single-use or multi-use virtual card to pay the policyholder.

2. Airwallex instantly generates a virtual card with the required amount, currency, and merchant type via API and returns the account number back to the system.

3. The claimant receives the activated virtual card through their mobile app in a frictionless process.

4. They can then use the card to pay any provider that accepts card payments, online or in person.

5. Card metadata simplifies reconciliation and provides transaction reports to the insurer.

6. With multi-currency support, this solution works for both local and global insurers.

Benefits of virtual cards for insurers and their customers

Virtual cards alleviate the hefty costs and hassle of producing, processing, and sending cheques and electronic payments.

Benefits for both insurance companies and their clients include:

• Faster, cheaper payments. Virtual cards cut paperwork, lower costs, and speed up payouts while giving claimants control over how they use their funds.

• Stronger security. Advanced encryption and custom usage settings help prevent fraud.

• Happier customers. Quick, hassle-free payouts improve satisfaction and keep you competitive.

Automate your payouts and deliver a better claims experience

As insurance becomes more digital, outdated payout methods can slow you down – and cost you loyal customers. Virtual cards offer a faster, more flexible alternative that improves efficiency and keeps policyholders happy.

By automating claims payouts with Airwallex, you can streamline operations, reduce overhead, and deliver the seamless, transparent experience modern customers expect.