An insurance company touches their policyholders only a few times per policy term. Regardless of the type of distribution system you use (Independent Agent, Captive Agent, Direct), you touch them when you quote/bind. You touch them when you put the policy in their hands. You touch them when they request a change/endorsement. You touch them when you send them a bill. And you touch them when there is a claim.
But you quote/bind/issue only once a term. You endorse only when they request it. You invoke your claims processes when they request it. But you bill them multiple times a year. This touch point may be somewhat painful for them. After all, you are asking for money. But it is also an opportunity for your organization to find a way to create some positive feelings in the touch.
Oh, and by the way, the reason billing systems are difficult to implement is that the system must accommodate exception logic. Your billing system says the downpayment is $100. What does the system do if it receives $89? Or $85? What is the cut-off for an acceptable short payment? And does that cut-off allow enough earned premium to allow adequate time to execute a non-payment cancellation without incurring bad debt? If your organization needs help with these questions, visit the contact page and reach out to us.
But you quote/bind/issue only once a term. You endorse only when they request it. You invoke your claims processes when they request it. But you bill them multiple times a year. This touch point may be somewhat painful for them. After all, you are asking for money. But it is also an opportunity for your organization to find a way to create some positive feelings in the touch.
Oh, and by the way, the reason billing systems are difficult to implement is that the system must accommodate exception logic. Your billing system says the downpayment is $100. What does the system do if it receives $89? Or $85? What is the cut-off for an acceptable short payment? And does that cut-off allow enough earned premium to allow adequate time to execute a non-payment cancellation without incurring bad debt? If your organization needs help with these questions, visit the contact page and reach out to us.