Order-to-cash and credit management for insurance companies
How insurers can improve customer satisfaction and cash flow by optimising their order-to-cash process
So much is changing in the world of insurance. New technologies and InsurTech solutions are being adopted and new laws and regulations require more stringent compliance and risk management. At the same time, consumers see increasingly little difference between insurers. So how do you ensure that customers (continue to) choose you as their insurer? And how do you gain and maintain control of your customers' payment performance to protect your cash flow? To stand out as an insurer, you need to provide excellent service and build long-term customer relationships. This also helps ensure that your invoices are paid sooner.
Improve payment performance by respecting communication preferences
When it comes to insurance, customers have high expectations. They want high-quality, reasonably priced insurance. They expect fast and efficient claim processing and complaint resolution and a straightforward payment process. Nowadays customers also want a wider range of self-service options, including the option of viewing their personal insurance matters online. Self-service is becoming increasingly important. The same goes for communication methods and channels. Invoicing is a good example. For instance, while some customers like to receive their invoices by email, text message or WhatsApp, others prefer to receive invoices by post. So your communication needs to be tailored to the customer’s needs. Insurers that adopt this kind of customer-driven approach are the ones that stand out. This improves your relationship with the customer, so your invoices are paid sooner, and it helps your cash flow. So how do you go about it?
Process optimisation leads to higher cash flow and long-term customer relationships
It is important to optimise your order-to-cash process and tailor it to the needs of your insurance customers. Collect data on your customers, such as creditworthiness, and note their communication preferences, for example e-invoicing. This information will help you segment your customers based on variables such as payment performance, method of communication, or region. You can also use this information to enhance the corresponding automated workflows and dunning strategies. If an invoice is paid on time, no action is needed. If not, direct customer contact may be required to find out why the payment was not made. The customer’s email address may have changed, the invoice may be incorrect or the customer may be experiencing financial difficulties. Contact the customer using their preferred method of communication, register the complaint, note the agreements you make and remain in close contact with the customer until the matter is resolved. Customers will appreciate your service and are more likely to pay your invoice sooner. This increases your cash flow and helps build long-term customer relationships.
Specialist software adds value
Specialist software is precisely how Onguard adds value. Our integrated platform offers solutions for every step of the order-to-cash process, from risk management to invoicing, payment processing, dunning, collection procedures and, if necessary, the appointment of a bailiff. Each step leads seamlessly to the next. So you always have an overview and know what actions you need to take that day to stay in touch with your customers and make a difference.