Billing software has always been a key component of an insurer’s administration product suite, used to set up payment plans, calculate due payments and dates, maintain account receivables, produce invoices, facilitate payment intake, and create management reports.
Despite its importance, however, billing software has often been an afterthought when updating IT tech stacks. And that’s unfortunate because legacy systems are usually very manual, inefficient, and error prone, making them ill equipped to support the demands of today’s marketplace.
Meantime, the pressure is on to improve efficiency, lower costs, and deliver better service. Today’s billing solutions go beyond a simple financial application to enhance customer experience, increase customer retention, streamline processes, and increase accuracy to help you stay ahead in a competitive market.
If you are still trying to manage billing with a legacy system, it might be time for a change. Here are seven signs you need to update your billing software.
- Multiple billing systems. Policy and billing systems can accumulate over the years via mergers and acquisitions or when trying to support multiple lines of business. Users then must continuously toggle between applications to find necessary information. All that back and forth takes time and mistakes are common. This makes it frustrating for customers who just want timely, accurate answers.Modern billing software offers intuitive, user-friendly customer and account summary screens to help billing teams quickly respond to policyholder and agent requests. Workflows and business rules are created to minimize data errors and speed up the billing process. Having one system also allows you to easily consolidate premiums into a single invoice.
- Dissatisfied customers. Studies show that most customer service calls are about billing, not claims. Customers call their insurers whenever they see a billing error, don’t understand the charges on their billing invoice, or want specific fees removed. Customers also call to update bank account details, change a billing plan midterm, or make other simple billing transactions. Unfortunately, resolving these issues can be time-consuming and costly for you – and annoying for customers.Modern billing software reduces billing inquiries and lowers call times with omnichannel, self-service capabilities. Agents and policyholders can view policies, pay bills, and enable midterm endorsements through their preferred channel. Routine issues can be resolved quickly and easily to the delight of customers and your team members.
- Inflexible payment terms. Legacy systems often can only accommodate monthly and annual billing plans or limited payment dates, such as the 3rd and 18th of each month. In today’s personalized world, customers expect greater choice and flexibility in billing plans and payment methods. They also expect premiums to be consolidated across multiple policies.Modern billing software supports multiple billing plans and payment options, including pay-as-you-report for workers’ compensation and usage-based payments. Current solutions combine all premiums across multiple policies into a single payment or invoice to facilitate payment collection.
- Delinquent payments. Delinquent payments are a headache for both you and your customers. They cause cash flow issues, extra work for your employees, and can cause financial challenges for your policyholders. Legacy billing solutions, however, cannot easily set up past-due date reminders or allow policyholders to select their preferred communication channel – e.g., text vs email.A modern billing system can eliminate many of these billing issues with messaging and alerts about due dates and payment options. Today’s software contains self-service configuration engines that allow you to set up your own delinquency payment rules, short pay thresholds, and more without requiring IT resources. By lowering delinquent rates, you increase revenue – and keep your customers happy.
- Old-fashioned payment options. If your system still uses checks as the primary payment option, consider this: Check fraud losses now top $24 billion, up 385% over the past five years. Customers also expect insurers to accept payment by credit cards, as well as popular digital payment methods such as Apple Pay, Venmo, and Paypal.A modern billing system supports multiple payment types, giving customers the freedom to pay however they want. The software also allows you to configure the fees associated with each payment type.
- Stagnant technology. Legacy billing systems often require extensive IT involvement to update, which can be so time-consuming and painful that it simply doesn’t happen. While operating without the latest features and functions is not ideal, operating without the latest security updates actively invites trouble.Modern, cloud-based billing software allows you to accelerate the adoption of new technology, make regular product updates, and scale up as needed – all without interrupting operations. You’ll always have the latest features and data security protections for better performance all the way around.
- Isolated information. Can your billing platform seamlessly connect to other core systems?Modern billing software allows you to tap into the growing ecosystem of Insurtech applications that support the insurance process. These applications easily integrate into core systems with plug-and-play capabilities via APIs. You can select the solutions that best meet your business and technology needs, while extending the capabilities of your billing solution.
If you are experiencing any of these seven signs, consider them red flags. Customers who can’t get fast, accurate answers to questions, make payments on their terms, and receive speedy service will go elsewhere.
Modern billing software can propel your business forward by improving customer satisfaction, along with productivity and efficiency. Consider it a well-placed investment in your future.
For help with an RFP, download our RFP template for insurance billing software, and check out Riskonnect’s Billing software.
