Making Financing Easy for Insureds

by Product FeaturesUncategorized

“There’s not a week that goes by where we don’t use it.”

That’s what Felix Moesmang, President at Capital Insurance, said when we asked him about his experience with Finance Connect. 

Although Capital has only been using it for a few months, Felix expressed how indispensable the tool is to him as he looks to build his new agency from the ground up in its first year of operations.

“A lot of our customers are interested in financing, but if I just send them the finance agreement in a DocuSign, they’re going to call me immediately with a lot of questions,” Moesmang said. “Finance Connect spells everything out and just makes things easier.”

For the insurance industry, the use of outside financing to help amortize large annual premium payments is nothing new. Premium Finance Companies (“PFCs”) have been working with agencies and brokers for decades to create payment flexibility and additional revenue opportunities. Finance Connect enables insurance companies to offer premium financing options – with their existing premium finance partners – at the point of online payment for their insured customers.

Capital Insurance, through their membership with Agents Alliance, has a relationship with AFCO Direct, one of the leading premium finance companies in the insurance space, and an early integration partner with Finance Connect. 

“Like so many in the insurance vertical, ePayPolicy has been a trusted payment vendor of AFCO,” said Mike Pappas, COO of AFCO. “We share a similar vision of providing insurance agents with leading digital solutions to grow their business and reduce costs associated with collecting premiums while also providing flexible payment options to insureds.”

Traditional “Buy Now, Pay Later” retail checkout options have been estimated to increase conversion rates by 20-30%, as well as increasing cart value by 30-50% (source). But unlike new BNPL entrants, many PFCs have long-standing existing relationships with their partners, and need no justification for the value they bring. 

“Central to the creation of Finance Connect was our intent to preserve existing partnerships with PFCs,” added Engels. “We didn’t want to try and take business from them, or create a marketplace. We want to help both sides work together faster for the convenience of the insured.”

Once a new or renewal policy has been quoted, the financing offer and terms are presented right at the time of payment. Finance Connect uses existing integrations to streamline recurring payments and payment reminders. 

“That transparency is so, so helpful,” said Moesmang. “We like to think it’s simple, because we’re in it every day, but financing can be confusing for the insured. They’re much more comfortable to have it all spelled out in front of them.”

Finance Connect is now available for all existing ePayPolicy companies.

Key Features

  • Allows insurance companies to work with their existing PFC partners
  • Premium financing options are presented at checkout alongside pay-in-full options
  • Simplified financing enrollment and upfront terms for insureds
  • Easily generates consolidated premium finance agreements (PFAs)
  • ePayPolicy is integrated with over 90% of the most popular agency management systems, saving time and manual data entry

New Feature: Quotes and Invoices

by Product FeaturesUncategorized

We’re excited to announce a new feature – Quotes and Invoices!

The traditional quoting and invoicing process often involves many parties, including brokers, carriers, and premium finance companies. While many insurance organizations use agency management systems for invoice generation, others operate out of multiple disconnected technology tools. Some companies utilize generic accounting services like Quickbooks just for invoicing, or send editable Word docs and PDFs.

“Countless agencies have done what most growing companies do – add piecemeal technology as the need arises,” said Josh Peterson, CPO at ePayPolicy. “They often keep using those tools even when they know it’s causing extra work, for lack of options.”

Quotes and Invoices helps insurance companies lead insured payers from quote, to invoice, to online payment. When done efficiently, policies can bind faster, allowing agencies to spend more time on account servicing and new business development.

“We previously used the prefilled payment page,” said Luke Roe of Roe Insurance “Now, we use Quotes & Invoices, because it has the option to set due dates and track open invoices.”

“We’ve enjoyed the ease of use from the client’s perspective. We send them one link, and they can choose to pay in full or finance in one place,” added David Call, founder of Ryan Everet Insurance.

Quotes and Invoices integrates with Finance Connect, allowing eligible ePayPolicy customers to offer premium financing at checkout via a connection to their existing PFC partners.

“We’re looking forward to when our premium finance partner will be integrated,” Roe added. “That will be a big game changer for us.” 

Quotes and Invoices is now available for new and existing ePayPolicy customers.

Quotes and Invoices – Key Features:

  • Receive payment and bind policies faster with a quoting tool designed for insurance
  • Generate custom quotes via an intuitive interface right from the ePayPolicy Dashboard
  • Email delivery of quotes, with direct links to a payment page for fast payment acceptance and professional delivery
  • Add financing option, when applicable, with your existing PFC partners (more info)
  • Historical and searchable database of previously sent invoices

​​Built In Honors ePayPolicy in 2025 Best Places To Work Awards

by Uncategorized

Built In today announced that ePayPolicy was honored in its 2025 Best Places To Work Awards. ePayPolicy earned a place among 100 other mid-size companies in the Austin area, for the 4th straight year.

The annual awards program includes companies of all sizes, from startups to those in the enterprise, and honors both remote-first employers as well as companies in large tech markets across the U.S. 

“Awards like this mean so much because you can’t just apply for them. They’re earned,” said ePayPolicy CEO Mark Engels. “We’re building something special, and I’m proud of our entire organization for their contribution in making this an incredible place to work.” 

Built In determines Best Places to Work winners based on an algorithm, using company data about compensation and benefits. To reflect the benefits candidates are searching for more frequently on Built In, the program also weighs criteria like remote and flexible work opportunities, programs for DEI and other cultural offerings. 

ePayPolicy was recently recognized by Gartner Digital Markets as a top digital payments platform, joining other tools like Venmo, PayPal, Stripe and Square, as the only insurance-centric payments platform on the list. 

Here’s what one customer had to say about the benefits of working with ePayPolicy:

“The amount of time we save equals more than 150 hours per year. Not to mention the savings of cc fees charged by the banks and card companies of approximately 5k per year.”

“Being recognized as a Best Place to Work is a testament to these companies’ commitment to building a workplace where individuals and innovation thrive,” said Built In CEO and Founder, Maria Christopoulos Katris. “Congratulations on this well-deserved honor.” 

About BuiltIn’ Best Places to Work

Built In’s annual Best Places to Work program honors companies with the best total rewards packages across the U.S. and in the following tech hubs: Atlanta, Austin, Boston, Chicago, Colorado, Dallas, Houston, Los Angeles, Miami, New York, San Diego, San Francisco, Seattle and Washington DC. Best Places to Work is distinct because its algorithm selects tech companies that build their offerings specifically around what tech professionals value in a workplace.  

About ePayPolicy

ePayPolicy offers easier payment tools, built just for insurance. ePayPolicy’s products bring insurance payments up to speed for agencies, carriers, MGAs and PFCs, with secure online payment pages, automated check processing, payables reconciliation and more. 7,500+ insurance companies trust ePayPolicy to handle their payments every day. Learn more: ePayPolicy.com

ePayPolicy Makes Inc. 5000 List for 3rd Straight Year

by Uncategorized

Austin, TX Aug 14, 2024 – Inc. magazine announced that ePayPolicy is No. 1639 on its annual Inc. 5000 list, one of the most well-known rankings of the nation’s fastest-growing private companies. The data-driven rankings highlight successful entrepreneurial companies, and has featured companies like Microsoft, Meta, Oracle, Patagonia in previous years. This was both ePayPolicy’s third year to apply and make the list.

“We’re honored to be included among the country’s most dynamic and growing companies once again,” said CEO Mark Engels. “It’s a testament to the value that our products bring to our customers, and the incredible team we have here building them.”

ePayPolicy was built to serve the insurance industry, founded on the belief that payments should be the easiest thing that agencies, brokers, MGAs, premium finance companies and carriers manage. The insurance industry has lagged behind most other verticals when it comes to modern, efficient digital payments and money movement. ePayPolicy’s suite of tools are changing that.

“We’ve made significant investments  over these last 3 years to bring new products and features to our platform, in direct partnership with our customers,” said Engels. “We have more integrated tools than ever before to make their payment processes the simplest thing that they do.”

The company, which began with efficient online payment pages, has since added dozens of integrations into popular management and accounting systems, as well as features like Payables Connect for faster accounting reconciliation, and CheckMate, a modern lockbox solution for insurance companies still managing paper checks.

ePayPolicy’s latest enhancement, Finance Connect allows insurance companies to offer faster access to financing for their insureds, while maintaining existing relationships with their PFC partners.

“We never want to build products in a vacuum, without our customer’s feedback,” said Engels. “More than anything, we’re passionate about making business easier for them. This recognition  affirms that we’re still on the right track.”

About ePayPolicy

ePayPolicy offers easier payment tools, built just for insurance. ePayPolicy’s products bring insurance payments up to speed for agencies, carriers, MGAs and PFCs, with secure online payment pages, automated check processing, payables reconciliation and more. 7,500+ insurance companies trust ePayPolicy and their expert, live support team to handle their payments every day. Learn more: ePayPolicy.com

More about Inc. and the Inc. 5000 

The Inc. 5000 class of 2024 represents companies that have driven rapid revenue growth while navigating inflationary pressure, the rising costs of capital, and seemingly intractable hiring challenges. Among this year’s top 500 companies, the average median three-year revenue growth rate is 1,637 percent. In all, this year’s Inc. 5000 companies have added 874,458 jobs to the economy over the past three years.

Methodology

Companies on the 2024 Inc. 5000 are ranked according to percentage revenue growth from 2020 to 2023. To qualify, companies must have been founded and generating revenue by March 31, 2020. They must be U.S.-based, privately held, for-profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2023. (Since then, some on the list may have gone public or been acquired.) The minimum revenue required for 2020 is $100,000; the minimum for 2023 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons. Growth rates used to determine company rankings were calculated to four decimal places.

The Paper Check Problem: Why Paper Checks Persist in Insurance

by Uncategorized

Despite living in an era dominated by digital technology, the insurance industry remains one of the last strongholds of paper checks. This persistence of paper checks in insurance is perplexing, given the operational inefficiencies and manual reconciliation issues they introduce. 

Annual use of check payments for the average American has been in decline for decades, but this trend doesn’t hold true for the insurance industry. According to data from CB Insights, check payments make up 55% of transactions for insurance companies, which is more than double the average for other industries, which stands at 22%.

Why Paper Checks Persist in Insurance

The continued use of paper checks in insurance can be attributed to several factors:

  1. Historical Precedence and Legacy Systems: Insurance companies have long relied on paper checks as a payment method. These entrenched practices are deeply embedded in the industry’s operations. Transitioning to digital alternatives can sound daunting and costly. Human behavioral changes – even those that make sense – are hard to change.
  2. Regulatory and Compliance Requirements: Insurance is a heavily regulated industry. Some small businesses would rather not worry about PCI (payment card industry) compliance, paying credit card fees, and/or finding a payment service provider that may increase their operational costs.
  3. Consumer Preference: A segment of the population, particularly older clients, seem to prefer paper checks. They trust the tangible nature of checks over digital transactions. Companies may feel that their clients are satisfied with check payments if they have not voiced otherwise. However, the graph below shows the decline in check payments and increase in credit card and debit card payments for both business and personal use.
Checks over the years

4. Perceived Security: For some, paper checks seem more secure than digital payments. The physical aspect of checks provides a sense of security, especially if the company has not yet encountered a bad experience with checks in the past.

Operational Pains of Check Collection and Manual Reconciliation

The reliance on paper checks introduces numerous operational challenges for insurance companies:

  1. Processing Delays: Paper checks require manual processing, from the moment they are received until they are deposited and cleared. This can lead to significant delays, affecting cash flow and financial management. 
  2. High Administrative Costs: The handling, processing, and reconciliation of paper checks involve substantial administrative resources. This includes the manpower needed to open mail, endorse checks, enter data, and resolve discrepancies.According to a Bank of America study, the costs of processing one business check ranges from $4 to $20, when taking into account stamps, envelopes, reconciliation, labor, etc. 
  3. Risk of Errors and Fraud: Manual processing increases the likelihood of human error, which can lead to incorrect entries and misallocations. Additionally, paper checks are susceptible to fraud through check alteration or forgery.
  4. Storage and Security Concerns: Physical checks need secure storage, which incurs additional costs. There is also the risk of checks being lost, stolen, or damaged before they are processed.

Benefits of Modernizing Payment Processing

Transitioning to digital payment solutions can significantly alleviate the operational pains associated with paper checks and offer numerous benefits:

  1. Efficiency and Speed: Digital payments are processed much faster than paper checks. This enhances cash flow and reduces the time insurers spend on administrative tasks. Automated systems can handle thousands of transactions in the time it takes to manually process a few checks.
  2. Cost Savings: Digital payment solutions can dramatically reduce administrative costs. The resources currently dedicated to handling, processing, and reconciling paper checks can be reallocated to more strategic initiatives. Furthermore, electronic payments minimize the risk of errors and fraud, reducing the costs associated with resolving such issues.
  3. Enhanced Security: Modern payment processing technologies incorporate advanced security features such as encryption and multi-factor authentication. This ensures transactions are secure, reducing the risk of fraud and increasing trust among consumers.
  4. Improved Customer Experience: Digital payments offer greater convenience for customers. They can receive payments faster and track transactions in real-time. This enhances customer satisfaction, as policyholders appreciate the ease and reliability of digital transactions.
  5. Data Integration and Analytics: Digital payment systems can be seamlessly integrated with other financial and operational systems, like insurance management systems. This facilitates real-time data analytics. It also makes it easy for consumers to pay within your online portal or website.

Overcoming Barriers to Adoption

To fully reap the benefits of modern payment processing, insurance companies must search for a payment processor that best fits their brand and needs. Utilizing an insurance-specific payment processor helps streamline operations for your team. Having the ability to enter invoice/account numbers, add notes, and select policies due for payment, can make work much easier for your business.

Shifting to digital payments also requires insurers to educate and train their workforce on the new systems and processes. Moreover, they need to address customer concerns and guide them through the transition. Companies must also ensure that the payment processor complies with industry regulations to make sure their data as well as that of customers’ is secure.

While the insurance industry’s reliance on paper checks may be rooted in historical precedence and regulatory requirements, the operational inefficiencies they introduce are undeniable. Modernizing payment processing offers significant benefits, including increased efficiency, cost savings, enhanced security, and improved customer experience.