Rising costs are putting an increasing financial burden on households. According to the 2024 Employer Health Benefits Survey by KFF, the average family health insurance premium rose 7% year-over-year, outpacing both wage growth (about 4.5%) and overall inflation (around 3.2%) during the same period. As the cost of living grows faster than income, households are under increased pressure to prioritize which bills they pay first.
And when that happens, being a priority matters even more—and ease of payment becomes critical. And the easier it is to pay? The faster your company gets paid.
For insurers, offering flexible, user-friendly payment options isn’t just a nice-to-have anymore—it’s needed to protect receivables, improve cash flow, and maintain customer satisfaction.
Financial Pressures Demand Easier Payment Options
Today’s consumers expect seamless, intuitive payment experiences. They order groceries, book appointments, and even send birthday gifts from their phones—often with just a few taps. Paying their insurance premium should feel just as easy.
With 65% of Americans living paycheck-to-paycheck, giving members a quick, effortless way to pay could be the difference between an on-time payment and a missed one. Multiple payment options—like Pay by Text, Guest Checkout portals, recurring AutoPay, and digital wallets—help insurers meet members where they are.
Meeting Members Where They Are
Modern policyholders don’t want to dig through emails to pay a bill—they expect simple, on-the-go options that fit into their busy lives. If a parent can tap once on their phone to pay a premium during a soccer game, you’ve made their life easier. That kind of convenience helps members stay current and keeps cash flow steady.
Offering Pay by Text, Guest Checkout, AutoPay enrollment, and mobile-friendly bill presentment isn’t just convenient—it’s essential for staying relevant as members face more choices and greater financial pressure than ever.
Why Payment Flexibility Drives Receivables
Flexible, easy-to-use payment options don’t just make members happier. They drive significant financial results for insurers:
- Faster Payments: Giving members instant ways to pay reduces the time to collection.
- Reduced Delinquency: Flexible options help members avoid missed payments and lapses in coverage.
- Higher AutoPay Enrollment: Easy AutoPay setup locks in consistent, predictable cash flow.
- Better Member Retention: A modern billing experience improves member satisfaction and loyalty.
Moving Forward
Financial pressures aren’t going away anytime soon. And while insurers can’t control the broader economy, they can control how easy it is for members to stay current on payments.
Modernizing payment options is a way to protect your bottom line and strengthen relationships with your policyholders.
Because when it comes down to it, the insurers who make it easiest to pay will be the ones who get paid first.
Alacriti’s Orbipay EBPP for insurers is a highly configurable, cloud-based solution designed to modernize premium collections and claim payouts. With flexible payment methods, digital-first channels, and seamless integration, Orbipay EBPP empowers insurers to offer the modern, self-service experience policyholders expect—while reducing operational costs and improving compliance. To speak with an Alacriti payments expert, please contact us at (908) 791-2916 or info@alacriti.com.
Updated from a blog originally published August 19, 2020.
