ITC DIA Europe

Unleashing the power of payments in insurance

Written by Jolijn Schalkwijk on Apr 9, 2024

In today’s dynamic financial and regulatory environment, insurance companies are required to adapt and revolutionise their operations. We sat down with Darren Snoxell, Executive Director, Head of Insurance, EMEA, J.P. Morgan Payments, to talk about how strategic payment strategies can empower insurers to adapt, innovate and thrive in an era of unprecedented change. 

Darren, why is the modernisation of payment processes so important in insurance?  

Darren: “It is of high importance to adopt a payment strategy to take advantage of cutting-edge digital payment solutions that offer flexibility and agility throughout the insurance lifecycle. Some insurers face issues while collecting and reconciling premiums and need a better view of trapped cash and global liquidity levels, whilst dealing with digital transformation, high currency volumes. Modernising the payment process affects various aspects of the insurance value chain, such as customer experience, treasury, claims processing, risk management and compliance.” 

How can a payment solutions provider help? 

“Insurers can benefit from partnering with a reliable payment solutions provider to optimise their payment workflows, minimise manual effort, manage risks and market volatility, ensure compliance with regulatory and legal requirements, and improve the customer experience. Customers are demanding faster and more efficient payment experiences. In this context, insurers need to collaborate with the right financial partner who can fulfil their financial requirements while also providing intuitive, speedy, and  flexible disbursement options that can help deliver a seamless payment experience. This will help insurers maintain their competitive edge and meet their customers’ expectations.” 

What are the examples you see having an impact in and outside the insurance industry? 

“One example is the adoption of real-time payments, which can provide customers with instant access to funds and improve cash flow management for insurers. Thinking further ahead, the use of blockchain technology to streamline and automate the claims process can result in faster, more transparent, and secure claims payouts for customers, while also reducing costs and improving efficiency for insurers.   

By leveraging blockchain technology and real-time payments, insurers can improve the customer experience, reduce costs, and increase efficiency. This can result in higher customer satisfaction and loyalty, as well as improved profitability for insurers. In addition, the use of these technologies can also have broader societal benefits, such as reducing fraud and improving financial inclusion. By embracing these learnings and leveraging new technologies, insurers can unlock the full potential of modern claim payments and stay competitive in a rapidly evolving market.” 

Is this what you see happening in the future? 

“The insurance industry is being impacted by rising global risks, such as climate change and cyber-crime, which are increasing in number and cost. Experts consistently rank cyber-crime as a leading risk to global businesses, and natural disasters have also caused an increase in losses over the past two decades. These risks are expected to continue growing, which will sustain the growth of the insurance sector. I see the future revolving around the seamless integration of advanced payment technologies to drive efficiency, transparency, and customer satisfaction throughout the insurance lifecycle. The next phases involve further leveraging AI, blockchain, data analytics, and real-time payments to enhance operational agility and customer experiences.”

What challenges and success factors do you see regarding this future? 

“These challenges may include cybersecurity threats, regulatory compliance, legacy system integration, and the pressure to innovate amidst digital disruption. Overcoming these challenges requires a proactive approach, collaboration, and investment in technology and talent. Other future success hinges on agility, innovation, collaboration, and customer-centricity. The successful insurer of the future will prioritise customer experiences, leverage innovative payment solutions, and foster a culture of continuous improvement.”

Let’s talk concrete steps, what can insurers do now to stay competitive? 

“A payment strategy can help insurers bridge the gap between consumer expectations and the reality of dealing with legacy systems. Insurers need to invest in advanced payment technologies, streamline processes, and enhance cybersecurity measures to stay competitive. Proactive engagement with insurtechs and strategic partnerships will be key to driving innovation and addressing industry challenges. Insurtechs play a crucial role in driving innovation within the insurance industry, particularly in the realm of payments. They bring fresh ideas, agile methodologies, and disruptive technologies that challenge traditional insurance models and accelerate digital transformation.”

How can J.P. Morgan Payments help insurers who want to adapt their payment strategy? 

“Processing nearly $10 trillion in daily payments, in more than 160 countries across the globe, in more than 120 currencies, J.P. Morgan Payments is more than just a global bank. We offer innovative solutions to help clients process payments, advisory and scale support for growing businesses and the trust to help clients through market cycles, connecting a business to the rest of the world.  

J.P. Morgan Payments was formed in 2021; it is a division of J.P. Morgan Chase & Co, the world’s largest bank, which was founded in 1799. J.P. Morgan Payments combines treasury services, trade, card and merchant services capabilities to help clients pay customers or employees, in different currencies, around the world. Our global suite of products, technology platforms, and consultative expertise make us uniquely positioned to address the challenges businesses face today and tomorrow. We focus on the core solution, specifically tied to treasury. J.P. Morgan Payments has a proven ability to deliver efficient and dependable payment solutions at scale as a business evolves, with the security one expects from a trusted innovator in payments.” 

Darren Snoxell, Executive Director, Head of Insurance, EMEA, J.P. Morgan Payments
Amsterdam 12-13 June

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