A 2019 ICTA nomination
Toronto, ON (Jan. 18, 2019) – ClaimsPay is currently being utilized by adjusters within The Commonwell to issue and track claim payments and related vendor payments via Interac e-Transfers.* The ClaimsPay technology was adopted in May 2018.
Key Features of ClaimsPay:
1. Functionality from anywhere: Payment generation can be done by any personnel authorized by The Commonwell and that has access to an internet connection. This includes infield adjusters, senior claims personnel and accounting department personnel.
2. Payment governance and approval: Claims payment creators can have the authority to generate and approve payments, or just generate. Customized approval limits are available for The Commonwell to utilize and meet their own governance and auditing standards.
3. No banking credentials required: Neither payment creators nor approvers require banking credentials nor does anyone at The Commonwell conduct any type of file upload. ClaimsPay automatically delivers appropriate file to The Commonwell’s bank which executes payment via Interac e-Transfer .
4. Automation of security question and answer: The security question and answer is standardized for ease of use but transactions remain highly secure.
5. Customized message within e-Transfer and Provision of The Commonwell logo: The e-Transfer message automatically contains The Commonwell’s logo and the text content is also standardized including the provision of dynamic fields to ensure each Interac e-Transfer is personalized to the claimant.
6. Option of same day or next day delivery: Creators have the option of designating a payment for same or next day, depending on the urgency of the payment.
7. Payment dashboard: The Commonwell personnel have access to a dashboard through the web application that shows the real time payment status of claims payments – created, approved, bank delivered, customer accepted or cancelled.
8. Customized reporting: An important aspect of adopting this technology was the ease of the ability to record back payments into The Commonwell’s systems. The reporting available helps makes this as easy as possible in advance of pursuing a full and direct integration of the two systems.
9. Auto cancellation. In addition, should Interac e-Transfers not be deposited by recipients within 30 days, the funds are automatically cancelled and funds are re-deposited to The Commonwell’s bank account.
Benefits:
1. Enhanced member (policyholder) experience at the moment of truth: At the time of loss, there are many uncertainties that members experience. The utilization of the ClaimsPay technology allows The Commonwell to enhance member experience by expediting the claims process to allow members to get back to a place they were prior to the loss. Whether it be advanced payments for additional living expenses, final payments or once and done adjudication losses, the ClaimsPay technology allows The Commonwell to eliminate uncertainties of traditional cheque payment delays and deliver immediate payment to members at their time of need. Traditional rush cheque payment request required adjusters to travel large geographics or reliance on courier service timelines, whereas the ClaimsPay technology allows us to send payments with the insured sitting across the table! Most recently, the ClaimsPay technology allowed The Commonwell to respond to catastrophic loss events in Ontario (flood and tornado) with an unprecedented member experience in members’ time of need.
2. Eliminate cheques: Utilizing ClaimsPay puts The Commonwell on the path to eliminate cheques for claims payments. Cheque issuance on average costs $15, including the actual physical costs together with the costs associated with gathering signatures. In addition, in using ClaimsPay instead of cheques has 100% eliminated the costs of stale dated and lost cheques (Average of $30 per occurrence).
3. Assurance of payment date and amount: With ClaimsPay, there is assurance of when funds are withdrawn from The Commonwell, making bank reconciliations simpler and easier.
4. Effortless brand support and building: Through the automated content of Interac e-Transfer together with including The Commonwell logo, each and every claim payment creates the same and consistent experience for members.
5. Instant access to funds: There is no need to either physically or virtually deposit a cheque. Cheques will commonly have up to a 5 day hold period at the member’s bank, which then restricts access to the usability of those funds for up to 5 days. Members do not have to sign up to any specialized service, only to have the ability to log in online to their own bank to accept an Interac e-Transfer. Having instant access to funds is especially beneficial in disaster situations where claimants require immediate funds (i.e. housing, clothes, food, business operating funds)
6. Providing personnel with modern tools: Giving The Commonwell personnel the tools to help enhance the member experience helps them spend less time on redundant tasks (driving cheques around for signatures) and being able to deliver funds in a method that members have come to expect.
7. Eliminate cheque fraud: Claims payments are no longer subject to cheque fraud.
8. Real time tracking of funds movement: Having wide access to the real time status of the payment provides useful information for The Commonwell personnel when updating either customer, other personnel or broker inquiries on claim payment status.
* Interac and Interac e-Transfer are registered trade-marks of Interac Corp. Used under license.
Business impact
Overwhelmingly, the member experience in claims has been significantly enhanced where we have used the ClaimsPay technology. Additional tangible metrics include:
- 112 payments for $319K executed;
- Funds availability to members has improved from 6 days to less than 24 hours from issuance;
- Reduced time to issue a claim payment from days to one hour in most cases;
- For each cheque eliminated, estimated savings is $15 for operational expenses at The Commonwell;
- Enhanced process management as cheque governance processes are not required as governance and tracking is provided by the technology;
- Real time access to payment status has eliminated unnecessary communication between adjusters, business representatives and accounting;
- Eliminated stale-dated and lost cheques, which on average cost $30 per occurrence;
- 100% elimination of cheque fraud potential.
About The Commonwell
The Commonwell Mutual Insurance Group has operated in Ontario since the late 1800s and provides a range of insurance products including farm, commercial and personal lines products. As a farm mutual, our members (policyholders) and the communities we serve are at the heart of our operation. With a passion for delivering personal service, The Commonwell is constantly looking for ways to provide exceptional value to our members. For more information, visit www.thecommonwell.ca.
About ClearPay
ClearPay is an independent Canadian company created by professionals with years of experience in the insurance and banking industries to automate payments and account reconciliation for the insurance industry. For more information, visit clearpaycanada.com.
About Interac
Interac Corp. operates an economical, world-class debit payments system with broad-based acceptance, reliability, security and efficiency. The organization is one of Canada’s leading payments brands and is chosen an average of 16 million times daily to pay and exchange money. A leader in the prevention and detection of fraud, Interac Corp. has a diverse group of shareholders that includes banks, credit unions, caisses populaires, payment processors and merchants. For more information, visit interac.ca.
Source: The Commonwell Mutual Insurance Group
