One of the fastest growing channels for real-time payments is business-to-consumer payments (B2C), specifically casualty and property insurance payouts. Some events that create an insured loss require a methodical approach so the policy holder can fully ascertain their loss and make certain they will receive what is owed.
Other times, consumers really need funds to recover quickly, and that is where real-time payments are solving problems. Visa announced that through some interesting partnerships with banks, insurance companies, fintechs and others, it is deploying real-time insurance payouts through the Visa Direct debit push payment network, delivering funds in at least half an hour and often within seconds:
Emergencies like car collisions or natural disasters come when people least expect them, leaving individuals unprepared to complete insurance forms, confirm claim estimates, and pay repair shop and medical expenses. During these times, quick access to funds is critical. Visa is committed to working with innovative companies in the insurance industry to help turn outdated and time-consuming processes associated with insurance claim payouts into near real-time1 access to payments when individuals, families and businesses need them the most.
In the event of an auto accident, people may not be able to wait to receive checks from their insurance company as it could take days, even weeks, before funds become available. With Visa Direct, Visa clients and partners can enable insurance firms to quickly push disbursements directly to an individual’s or business’ bank account using their debit card for real time access.
Visa is working to help enable real-time funds disbursements for insurance companies in partnership with their financial institutions, and their customers. By deploying insurance payouts powered by Visa Direct, Visa’s real-time push payments platform, PNC Bank and Erie Insurance customers can now choose to have an electronic claims payment delivered to their bank account in real-time. Visa is also working with InsurPAY by Invenger Technologies to help enable real-time funds disbursements for American Family.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group