*Updated from a blog originally published October 13, 2020.
You already know that checks cost too much to send. The range can be anywhere between $4 and $15 per check. Therefore, the associated costs with sending a check, such as postage, administrative costs, and stop payments due to loss or theft, are substantial. Digital disbursements have become indispensable for insurers, offering speed, efficiency, and security in claims payouts. Here’s why embracing them now is critical:
Instant Disbursements Are Now the Expectation
Fast access = higher satisfaction
In January 2025, 41% of U.S. consumers reported receiving disbursements instantly—up from just 11% in 2018—showing a threefold surge in adoption.
Additionally, 90% say they’d choose the instant payout option if offered. For insurers, meeting this expectation can significantly impact renewal and referral rates.
Business advantages for carriers:
- Operational efficiency & cost savings:
In 2024, $225 million were lost due to check fraud, and checks still represent nearly half of disbursements for insurers. Going digital cuts printing, stuffing, mailing, and fraud-related expenses, while handling more payments with the same staff.
- Accelerated adoption of digital disbursements:
According to a 2024 Datos Insights Report, 73% of insurers have transitioned at least some claim payments to digital channels, often seeing reductions in average payment times by up to 5.5 days over traditional checks. This translates to faster settlements, better customer experience, and fewer inbound service calls.
Security & Claimant Trust
Push-to-debit is preferred and secure
Push-to-debit and instant card-based payments are increasingly favored by consumers for their speed and familiarity. These methods offer enhanced security features such as multi-factor authentication and tokenization, reducing the risk of fraud compared to traditional checks or ACH transfers.
Meeting Consumer Expectations
Digital-first is no longer optional
Younger policyholders are embracing mobile-first payments—79% of Gen Z regularly use digital wallets, compared to only 26% of those over 60—so flexible, mobile payment support is now table stakes. Also, digital wallet usage is projected to grow 77% by 2028, signaling a shift in consumer preference toward flexible, mobile-friendly payment options.
Key features of a modern disbursement platform include:
Feature | Benefit |
Instant push-to-debit & virtual card options | Real-time delivery and increased claimant satisfaction |
Multiple payout methods (ACH, digital wallets, RTP) | Flexible choices based on consumer preference |
API-driven architecture | Seamless integration with core claims and billing systems |
Real-time tracking & reporting | Transparent payment status and reconciliation tools |
Consumers now expect instant, secure, and convenient payouts—especially during stressful times like filing an insurance claim. By adopting digital disbursement platforms, insurers can reduce operational costs, mitigate fraud, and elevate the claimant experience—ultimately driving competitive advantage in a digital-first marketplace.
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.
