Removing More Friction From Premium Payments With Subscription Billing

A 2019 ICTA nomination

Toronto, ON (Jan. 21, 2019) – Services like Netflix have set a standard for consumer expectations in regards to online subscription services and payment flexibility that the insurance industry has not been meeting. Our Subscription Billing Service was created to meet this unsatisfied need.

Our Subscription Billing Service allows Gore Mutual to boost GWP while strengthening our customer-centric approach to doing business. It also helps us further differentiate ourselves from competitors by offering insurance brokers modern methods to reach new customers online and grow their businesses by providing the seamless online sales experiences that consumers are now accustomed to. As we all know, the world is becoming an increasingly digital place. Gore Mutual has put a strong focus on digital innovation to help our broker partners compete with the best online offerings.

Our Subscription Billing Service also offers other benefits to our company by eliminating the issue for Gore Mutual of time on risk with unpaid premiums. With our Subscription Billing Service, if a person doesn’t have sufficient funds on their credit card for their next payment, their policy automatically lapses when the current monthly term finishes. It also saves the administrative time and costs associated with non-payment.

We began piloting this insurance solution in early 2018 with a few select brokerages, and our Subscription Billing Service went live with 36 of our digitally-connected brokers in November 2018. Our Subscription Billing Service was extremely well received in its pilot phase and outsold annual billing 4:1. Now that this payment option is available to more brokers across Canada, we fully expect it to continue to gain popularity with consumers and for sales to keep increasing.

During the pilot phase, customers and brokers were very happy with the service and we received numerous messages from other brokers asking when they would be able to offer the solution through their own websites and mobile apps to consumers. Many of our competitors have also reached out to ask how we were able to create this innovative service. Other insurers have tried to build a similar payment option in the past but couldn’t meet the necessary regulatory requirement. We were able to successfully do this. Here’s what LOT1P principal consultant Behzad Salehoun has said about it: “Gore Mutual’s Subscription Billing Service is game changing. It allows customers to pay monthly like a Netflix subscription without requiring premium financing.”

Benefits

With our Subscription Billing Service, customers can purchase insurance products online at their convenience and their policy will stay active as long as funds are available each month on their credit card. This billing method has many benefits. Standard pay plans can be problematic due to risks associated with non-payment of premiums. In Canada, credit card payment reports take several months to realize insufficient funds. In addition to the lost premiums during that time, there’s also a significant amount of administrative work involved with non-payment. With our Subscription Billing Service, if a customer’s credit card has insufficient funds, their policy will automatically lapse at the end of the current monthly term.
No other insurer is offering a Subscription Billing Service in North America. For our standard products, non-payment of monthly credit card pay plans cost us thousands of dollars annually. We wanted to create options for our digital products that wouldn’t put the company at risk for further non-payments. That’s why we built our Subscription Billing Service.

The results and reaction to our Subscription Billing Service have been overwhelmingly positive so far. In its pilot phase, our Subscription Billing Service outsold annual billing 4:1.

About Gore Mutual

Founded in 1839, Gore Mutual is Canada’s oldest property and casualty insurer, with over $435 million in premiums and over $1 billion in assets as of December 31, 2017. Based in Cambridge, Ontario and Vancouver, British Columbia, this Canadian-owned and operated mutual company employs over 350 people and is known for its investment in people, technology and innovation. With a long-standing commitment to genuine personal service, and with InsurTech partnerships such as BrokerLift, Gore Mutual is an unwavering supporter of its network of insurance brokers, who offer the highest standards of service, choice and advocacy to Canadian customers. For more information, visit www.goremutual.ca.

Source: Gore Mutual Insurance Company

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