ePayPolicy announced the release of Payables Connect, the newest innovation in their suite of insurance payment and reconciliation products. Leveraging ePay’s existing integrations and machine learning technology, Payables Connect completely automates the reconciliation, creation, and payment of due payables.
Case Study: MGA is First to Launch Automated Check Reconciliation
Bailey Specialty Risks, Inc. (BSR) recently launched CheckMate, our machine learning powered check reconciliation solution, becoming the first customer to utilize every ePayPolicy service.
As a wholesale insurance MGA that offers professional lines, their journey with us has been unique, and it continues to broaden and deepen.
An indirect route to digital payments
BSR has been offering digital payments since 2017. Vickie Harmon, Vice President & CFO, says, “Our customers were not coming to us saying ‘Oh, I wish I could pay online.’ They were saying ‘I wish you would offer direct bill.’ She categorically could not. She also wondered if offering electronic payment to her agents would meet with resistance. But she checked out ePayPolicy and some other payment processors.Milan Malkani, ePayPolicy Co-founder, convinced Vickie to try it. He promised that If she liked it, we could go deeper and customize it for BSR. Vickie picked a few agents she knew were tech savvy and had the type of business that would benefit from digital payment. She had some good response, although there was some pushback at first about who pays the ACH and credit card fees. Because of ePay’s ability to pass fees or absorb them, they have found a solution that works for them and their partners.
Integration with AMS
BSR uses Vertafore’s AIM, and integrated ePayPolicy fairly early on. Fast forward to 2022. Vickie says, “I was on the hunt for a new agency management system. AIM is not an ideal fit for our specialty business.”At a conference she found herself at dinner with an amiable payment processor rep. She says: “I agreed to view a demo, and at every step asked questions like” ‘Who pays the fees? What about integration? What about dunning notices? We can pay our carriers as outgoing payables?’” She reports: “They had nothing, and they’ve been in business almost as long as ePayPolicy! No one else in the marketplace is offering the breadth of services you do.”
In the end, she stayed with ePayPolicy, and also decided to keep AIM. Vickie talked about a deposit reconciliation problem she encountered shortly after the integration. Suffice to say it got resolved once she brought it to our attention and ePayPolicy introduced Batch Deposits. Another milestone in our relationship was when Milan suggested ePayPolicy could send out Notifications of payment due.
Automated check processing
Most recently, BSR became our first customer to use CheckMate, our automated check processing service that consolidates check payments and digital payments in a single dashboard. Vickie says, “We have to create the payment in AIM regardless. Before CheckMate we would create the check in AIM and go through several extra steps to mail it. Now I export it to ePayPolicy and it goes to a safe digital lockbox, and I don’t have to think about it.” She loves having the same process in CheckMate as she has for electronic payments. She only wishes more carriers would sign up for a recipient account to be paid via ACH.
Biggest business benefit to BSR
Vickie credits ePayPolicy with creating an “incredible efficiency.” The accounting people get notified and they can stay on top of payables. “ePayPolicy makes it easier for those in our agencies to pay us timely. Operations people like us. They say, ‘they are so easy to work with. I can pay them in no time.’ Vickie says anything that gets people talking positively about BSR is a good thing.
Advice to others on the fence about digital payment
“Just try it,” she advises. “There’s a really low barrier to entry. It’s a whole other way of doing business. Automated payments free up your time. Even if it’s five minutes, that’s five minutes you can spend on other things that aren’t not payment related.”
About BSR
Bailey Specialty Risks is a specialty insurance wholesale broker located in Hendersonville, Tennessee. BRS offers coverages that include Professional Liability, Management Liability, and Privacy & Security/Cyber Liability. All business is written with licensed/contracted Retail Insurance Agencies throughout the United States
Riskguard Insurance Solutions Goes “Full Digital” with ePayPolicy
Riskguard Insurance used to have two digital payment solutions: one for ACH payments and another for credit card payments. Not ideal, to say the least. Last year, they switched to ePayPolicy. Check out our newest blog where CEO Irene Herman explains what a game-changer ePay has been to the company and their clients.
How Libke Insurance Stays Ahead of the Digital Curve
The agency had been using Simply Easier Payments for about 3 years when they switched over to ePayPolicy in 2017. ePayPolicy had a more professional look, especially because they were able to use their branding on their payment page.
CS&A Insurance Gets Paid Lightning Fast with ePayPolicy
Accounting Director Carrie Davis describes how her agency came to offer digital payments. Several CS&A clients had been asking about paying their premiums with a credit card. She looked into options through their AMS vendor. But it seemed complicated and expensive and “not something we wanted to deal with.”
Then, one of their agents got introduced to ePayPolicy at a conference and brought back some literature. Carrie was struck by the simplicity and low cost and called ePayPolicy to learn more.
The introduction of digital payments through ePayPolicy in March 2020 turned out to be both smart and timely. CS&A launched right before COVID hit, just as businesses started shutting down. From there, “it just took off.”
Primary Problem
Carrie says, “Our biggest collection headaches were slow payers and waiting on the mail to get here.” Enabling clients to pay with a credit card or via ACH has significantly sped up CS&A receivables. This was especially notable during the mail slowdown during the pandemic.
Client Acceptance
The agency’s clients were quick to jump on the digital payment option. All they have to do is click on a link. Carrie reports: “Our CSR account managers have payment links in their emails. We have a link on every invoice.” Plus, there’s a big, green “Pay Now” button right on the CS&A website.
She says most clients like earning points for their credit card payments, although some are paying with ACH.
Carrie doesn’t hesitate at all when asked what her favorite feature is – the ease of use. “It’s easy for us, and for the insureds as well.”
Biggest Benefit to CS&A
“It’s so much quicker to pay now. Sometimes we even get payment before the invoice goes out! We are just waiting for the money to get in once we get the batch report,” notes Carrie. “It’s really improved our collections.”
Advice to Other Agencies
If your agency is just beginning to explore offering digital payments or is actively researching providers, Carrie recommends ePayPolicy. She advises: “Sign up. Just do it. I don’t see any reason why you wouldn’t.”
About CS&A Insurance
Franklin-based Chappell, Smith & Associates (CS&A Insurance) offers a one-stop-shop for commercial, employee benefits and personal lines coverage. The agency’s specialty divisions serve the hospitality, construction and aviation industries and the unique risks of high net worth clients. Focused expertise, service and good old-fashioned courtesy have kept this esteemed agency growing since 1881 (as Chappell, Smith since 1981).
Digitize Payments to Increase Customer Satisfaction…and More
The trend is clear. People today prefer to pay digitally. That includes everything from Amazon purchases to their monthly utility bill – and yes, their insurance premiums! While there are still a few diehard check writers out there, digital transformation is here to stay.
The Many Benefits of Digital Payments
Customer convenience is often cited as the main reason businesses offer digital payments. And statistics bear that out. In a survey of billing executives, 97 percent reported higher customer satisfaction as a benefit of digitizing payments. The report, called “The Digital Edge”, also found other key business benefits, such as: reduced collection times (86.5%), increased operational efficiency (90.8%), cost reductions (81.6%) and gaining a competitive edge (92.3%).
Who wouldn’t want to collect payments faster and more efficiently, at less cost, and gain a competitive edge?
Do Your Research
As you know, the insurance industry has historically not been an early adopter of technology and innovation. However, that is changing. ePayPolicy has customers that have been using our digital payment solution for five or more years.
The pandemic also created a spike in insurtech adoption, as the industry turned to technology for remote team communication, customer relationship management and more. Customers and accounting teams needed no-touch payment options not only because of the risk of Covid, but also because checks being delivered to an empty office was of no use. Many of the habits left by the Covid pandemic are here to stay.
Where to look and what to look for
Which payment system is right for your organization? Read reviews, ask your state association rep (or look on their website for preferred partners), talk to your IMS provider. Which payment processor do they recommend? You want a system that streamlines internal processes, expedites receivables and integrates well with other systems already in place (or planned).
Because of the fiduciary nature of collecting insurance payments, a generic payment system built for retail transactions is likely not the best choice. You will want to focus your search on solutions designed specifically for the insurance industry. This will give way to insurance-specific features like management system integrations, and you can also rest assured that customer support will understand your specific problems when needed.
Try Before You Buy
Compare apples to apples. Understand what your payment processing vendor charges for setup, as well as their monthly subscription fee. Do they offer a free trial? Do you have to sign a multi-year contract? What kind of training/support do they provide?
At ePayPolicy, we offer 60 days free to new users, no contract or set-up fees.
Customer Adoption is Key
According to The Digital Edge survey, one of the biggest hurdles to digitization is employees with insufficient technical skills (59.6%). Be sure to choose a digital payment system that’s easy for your employees to use. After all, they will be the ones behind customer adoption.
Encourage everyone to advocate for digital payments. Announce proudly to customers (and prospects) that you now take payments online. Promote it across your website, newsletters, press releases, ads and social media. This will be welcome news! But don’t count on customers to remember from one payment to the next.
Put a “Pay Now” link on your invoices, in your emails, and a big, can’t-miss button on your website. Show customers how simple it is to pay their premiums through your digital payment portal. Increased loyalty is definitely part of customer satisfaction!
With so many business benefits and literally no downside, isn’t it time to prioritize digital payments?
2020 InsurTech Award Winners
We’re excited to share the results of the 2020 InsurTech Award presented by ePayPolicy. A record-shattering 165 agencies entered, representing a diversity of agency sizes and locations.
Each entrant received an ITA (InsurTech Adoption) score report. ITA scores assess the use of technology in six specific areas: sales, marketing, team collaboration, client experience, customer support, and agency management.
Congratulations to our 2020 top scorers. These agencies truly exemplify the spirit of the award through innovative use of technology across agency functions.
Meet Our 2020 Runner Ups
Insurance Brokers of Arizona, Gilbert, AZ
Insurance Brokers of Arizona was founded in 2005 by Cameron Brown. After 12 years of operating the agency “traditionally,” Cameron recognized multiple opportunities to modernize. Technology solutions help his team and his clients, making for a better experience for everyone. Cameron’s advice on technology adoption: “Start with your biggest pain point, find a solution that works for you, and implement it. Then move to the next pain point and keep going.”
ElmSure Insurance, New York, NY
ElmSure specializes in serving real estate investors, offering tailored risk mitigation solutions for properties at all stages of construction and occupancy. Spokesperson Lipi Raghunathan commented, “Building technology and processes take time, but as long as the organizational foundation is sound, it’s worth it to create these automated systems.” ElmSure views technology as increasingly essential as agents, staff, and clients balance working remotely and in person.
Portal Insurance, Mobile, AL
Bradley Flowers founded Portal Insurance in 2019 with a mission to make insurance more customer-centric. He suggests there are a lot of ‘shiny objects’ out there, and it’s easy to get distracted. Bradley’s threefold test for new technology:
- Does it integrate well with our other tech? Don’t buy systems that add work to your tech stack.
- Who owns this technology? He prefers someone who is “indie all the way.”
- Does this tech make it easier for my end consumer to do business with me? If the answer is not a resounding “yes,” don’t buy it.
… and Our 2020 Grand Prize Winner:
CalNonprofits Insurance Services, Capitola, CA
This women-led, nonprofit brokerage helps nonprofits throughout California navigate the insurance market. When they hired Colleen Lazanich as CEO four years ago, little did they know they were getting a self-described insurance geek, techie, data lover, and avid benchmarker. In four short years, Colleen has replaced every piece of hardware and software used by her team.
Calnonprofits had been operating like so many nonprofit organizations: way behind the technology curve. They purchased their computers at a recycling center. Virtually everything was done manually.
Colleen views integration with the AMS as the only way to have “one true source of data, one source of truth.” Replacing their management system was one of her first priorities. Many integrations and automation followed.
- As it happens, the new management system provider had just released a sales management application, which has been a boon to CalNonprofits’ agents.
- CalNonprofits was using a tool that digitizes the insurance application and renewal process. Soon, that application provider was bought by the new AMS provider.
- Other key technology upgrades include:
- A new enrollment platform
- An automated ticketing process (not currently integrated with the AMS)
- Replacing a well-known email marketing vendor. CalNonprofits recently purchased a new marketing automation system offered by … their AMS provider.
- Digital payment processing. CalNonprofits was in a beta test through one of their technology vendors. That product never made it to production but led Colleen and her team to ePayPolicy.
Says Colleen, “Being paperless has greatly improved us.” She is proud that her team has embraced so much automation in such a short time. One such change is a team collaboration/project management solution replacement in 2018. The new system is “intuitively organized and really ramped up productivity.” Because of that—and the other internal and client-facing automation—CalNonprofits was able to pivot to remote work in a single day when the COVID pandemic hit.
Colleen Lazanich says she entered the InsurTech Award competition specifically to get the ITA score report. Her team is thrilled to be recognized. But as long as there are new areas to automate, new technology solutions to integrate, CalNonprofits will continue to pursue them—and seek to better their 2020 ITA score in future years.
Once again, thank you to our 165 entrants. Congratulations to CalNonprofits, and to runners-up Portal Insurance, Insurance Brokers of Arizona, and ElmSure.
If you’d like to be notified of our 2021 call for entries, follow us on Facebook and stay up to date on all things InsurTech.
How Bryan Insurance Transformed the User Payment Experience
Bryan Insurance has been putting clients first since 1921. Since 2017, that commitment includes offering clients the choice to pay electronically via credit card or ACH.
Planning For The Future
Tommy Dies, CEO, CFO said it was not client demand that drove the decision. Very few clients were asking for a digital payment option. But Tommy saw it as essential to the customer experience; and he did not want to lose business to larger agencies. So he made the move proactively.
Tommy had been keeping an eye on the digital payment landscape. He says, “I pay attention to technology. We need to stay current with it. If something intrigues me, I research it. I see who is using it, what vendors offer it, who has the best service.”
In this case, Tommy’s research included talking to other members of Combined Agents of America. CAA is an aggregator of 68 independent agencies located in Texas and other Midwest states. He also inquired within his AMS user group. And, as a board member of IIAT, Tommy had association members to tap as well.
Tommy interviewed several digital payment vendors. Then he met Todd Sorrell, ePayPolicy co-founder. He says, “I don’t remember if Todd called me or I called him. But ePayPolicy was the one that offered 100 percent of our money up front.”
The Agency’s ePayPolicy Experience
From a seamless launch to ease and simplicity of use, ePayPolicy keeps delivering for Bryan Insurance Agency and their clients. Tommy opted for the “Custom” ePayPolicy plan, which brands their payment page with the Bryan Insurance logo. The agency also has a branded app through Applied Systems. Now that ePayPolicy integrates with the Applied CSR24 app, Bryan Insurance clients can pay directly through the app.
In terms of ongoing service, Tommy’s team has rarely had to reach out. But when called, “their customer support bends over backwards, they’re Johnny on the spot.” Tommy recalls a minor roadblock early on. They had a client that needed to make a large payment above ePayPolicy’s payment threshold (which is there for the agency’s protection). A quick call explaining the situation to Support and the threshold was temporarily raised. Tommy also attends a lot of industry conferences and sees ePayPolicy there. He says, “It’s amazing how friendly and welcoming they are. They seem to love their clients. They really want to do a good job.”
Client Response to Digital Payments
The agency has pushed electronic payment with their commercial lines clients. He says the biggest users are service people to the oil and gas industry (a Bryan Insurance specialty market). These 20- to 30-year-old consultants do everything through their phone. “We make it easy for them. They can use our app and it takes them right to the ePayPolicy portal.”
He believes more personal lines clients would convert if he promoted electronic payment more. He notes that with people stuck at home and working remotely during the pandemic, the agency successfully pushed digital payment through social media and email.
Main Benefits
Tommy names three primary benefits to his agency:
- It offers a good electronic experience, which increases the overall customer experience.
- Having it available puts us up there with the larger agencies.
- It’s attractive (even essential) to younger clients. Our older clients still want to write a check. What matters is they have a choice.
… and some advice
Tommy offers this advice to independent agencies: “You just have to offer digital payments. Period. ePayPolicy is the best. It works. Call and talk to them.”
When Your Agency Goes Digital It’s Not Just Your Clients Who Will Be Thanking You.
The term “payment environment” is used a lot these days. It describes consumer preferences and trends in paying for goods and services. Notice that the phrase contains the word “environment.” It’s not by accident: paper-based billing and payments seriously impact the physical and natural environment!
We touched on these environmental drawbacks in our blog post on the hidden costs of paper checks. We understand your primary goal is to sell insurance and keep your clients happy—saving the planet may not be a top, or even mid-tier, priority. However, it’s good business to think about reducing your agency’s carbon footprint. You might want to care because…
Your Clients Care
Environmental responsibility is expected from more than just larger companies. Even small business owners are becoming more aware and incorporating sustainability practices.
Your Employees Care
Who among us doesn’t know about “reduce, reuse, recycle,” which now includes a fourth “r”: rot (compost). As consumers themselves, employees want to support environmentally friendly businesses. Working for one can be a source of pride.
It Can Save You Money
As discussed in the “hidden costs” blog, paper checks are more expensive to process than other payment methods. If you can cut costs without cutting corners on the environment, it’s a win-win.
Let’s do a quick comparison of payment methods and their impact on the environment.
Payments by Check
- The process of making paper checks includes excess energy, water and chemicals (not to mention the trees themselves).
- Transportation (mainly driving) of the check itself creates air pollution.
- As discussed in our companion blog on security, the process of mailing (or hand-delivering) and taking the check in for deposit enlarges your carbon footprint.
- Envelopes and stamps are added paper waste (and expensive).
If your agency has a paper recycling program in place, that’s great, but this cannot help in the other various ways paper checks have a negative effect on the environment.
Digital Payments
- There is no “production” involved (no use of natural resources or chemicals).
- There is no transportation involved (zero carbon footprint).
- There is no paper waste, because there is no paper, postage, or printed receipts (receipts are generated automatically and transmitted electronically)
From an environmental responsibility standpoint, the choice is clear, clean and sustainable. Digital payments are the way to go, and ePayPolicy makes those payments even more secure and sustainable.
Choosing the Green Option
Our payment environment is rapidly shifting to a digital payment environment. You might want to conduct a quick sustainability audit and show your business clients (and employees) you’re doing your part to support their efforts.
Switching from paper payments to electronic payments is easy with ePayPolicy, because we integrate with your AMS. It’s faster, simpler, and more convenient for your insureds. Additionally, it’s a positive green-business practice that will bring more literal “green” to your agency.
Is Your Agency’s Customer Experience at Risk with Paper Payments?
It’s Friday at 4:00 and you just ordered takeout from your favorite restaurant. Ideally, the ordering process was quick and easy, because your payment information was already in the system. Now, imagine instead that the restaurant would not accept your credit card and insisted you write a check. Chances are you would look for another restaurant—not because you wanted to, but because this request made paying for your food such a hassle.
You deserve a simple user experience (UX). And so do your insureds.
Here are 5 realities of today’s payment environment and why it’s important to offer digital payments instead of checks only. (Hint: it’s mostly about improving the customer experience, but also benefits your agency directly.)
1) Catch a Rising Wave
The Federal Reserve has been tracking payment trends since 2001. Their most recent report states that debit and credit card payments have increased by 8.9%, while paper check usage has decreased by 7.2%. There’s no doubt which way the trend is heading.
2) Your Clients are Getting Younger
Think of the business owners you serve. Are they mostly 50+? 40-50 or 30’s? Under 30? These generations have very different payment preferences. And guess what? Checks are not the top choice of any group. Even the middle-aged Generation X are credit card-centric. Millennials and Gen Z consumers expect digital choices and the ability to pay from anywhere, anytime.
3) Checks are Expensive
Take a look at our blog post on the hidden costs of paper checks. Here’s a quick takeaway: Processing a check costs a business 10 times more than an ACH transfer, and receiving a check costs your agency five times more than an ACH payment.
Contrary to paper checks, credit cards can actually benefit everyone involved in the payment process. Individuals (including business owners) often earn rewards for paying by credit card, and you can pass the processing fee on to the client using our payment platform. They are happy to pay it, because they are just happy to have the digital payment option—and the extra points can’t hurt!
4) Who’s Serving Whom?
We’re not avoiding the truth; people still do write checks—but it doesn’t mean they want to. It’s because some small businesses (including insurance agencies) are stuck in an old fashioned payment rut. Don’t be that small business! Be the agency that caters to your clients, or risk losing them to one that does.
5) Offer Instant Gratification
Insureds like to trace large payments. Checks are slow. They write and send (or hand deliver) the check, wait for you to deposit it, then wait for it to clear the bank. When submitting digital payments, a payment is confirmed immediately with an auto-populated confirmation, and typically an emailed receipt. ePayPolicy offers the same experience. Since our portal connects to most agency management systems, there’s automated documentation there, too.
Give the People What They Want
Insureds want and deserve superior service, and you want to offer it. That includes payment options that deliver convenience, speed, simplicity, and security. By accepting only checks, you’re denying clients all five benefits. You’re putting “that’s how we’ve always done it” ahead of the reality of your clients’ payment needs. Offering digital payments shows you’re serious about serving all your client groups, and technologically ready for tomorrow’s digital-only expectations.