As the insurance industry continues to adopt new strategies and drive down operating costs, payment processing platform Stripe is helping them navigate this trend with financial infrastructure that reduces friction and scales to embrace new business models and changing economic conditions.
Since 2020, the number of companies using Stripe to sell insurance online has more than doubled and insurers on Stripe collectively processed nearly $8 billion in payments in the previous year alone.
Pie Insurance, a provider of workers’ compensation insurance for small businesses, have used the platform to let customers pay directly from their business bank accounts.
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Using Stripe Billing, Pie built a custom billing solution and doubled its ACH Direct Debit penetration rate to help reduce payment failure rates and lower transaction costs.
Pie also used Stripe Invoicing to automate its payments collection and reconciliation process, benefitting from features like smart retries and adaptive acceptance to ensure customers pay on schedule.
“Simplicity is not native to insurance, but having a great distribution model is just as important as having a fantastic insurance product,” said David Samuels, chief commercial officer at Pie Insurance.
“With Stripe, we vastly improve our customer experience and keep hitting our growth goals.”
The payment platform uses data integration infrastructure to help insurers tailor their offerings to their clients’ needs. NEXT Insurance, a digital insurtech company, uses Stripe Financial Connections to let small businesses conveniently link their bank accounts to handle payments automatically on an ongoing basis.
“Building insurance products for today’s businesses requires an immense amount of time and resources,” said Eric Harnden, vice president of partnerships at NEXT Insurance.
“Being able to quickly onboard customer bank accounts with Financial Connections allows us to stay nimble so we can continue to equip our customers with a seamless, simpler insurance experience.”
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Digital infrastructure is modernising relationships between providers, customers, and agents throughout the insurance industry. SMB insurance provider CoverWallet also uses Stripe payments and Stripe Connect to streamline multiparty payment flows.
“Customers expect a smooth purchasing experience no matter what they are buying, and Stripe has allowed us to deliver on that,” said Amanjot Khaira, chief product officer at CoverWallet.
“The automation of payment flows through Stripe Connect eliminates the need for manual splitting and reconciliation of payments with multiple partners, allowing us to focus on providing exceptional service to customers.”
As insurers have long relied on inflexible legacy systems, home insurance company Luko reinvented its customer experience by offering 100% digital onboarding through Stripe.
This helped Luko automate payment processes and integrate local payment methods while keeping costs low.
“With Stripe, our customers can be onboarded digitally across all regions,” said Raphaël Vullierme, CEO of Luko.
“Being able to quickly bring new customers on board has helped us stay flexible as we scale to new markets.
Stripe’s digital tools are also helping insurers find new markets and launch new products.
Australian insurance provider Flip has also used Stripe Billing to create a new category of on-demand insurance with pay-as-you-go daily and weekly policies that can be turned on and off as needed.
Flip customers benefit from instant, flexible coverage, and can have claims payouts issued directly to their bank accounts.
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With ransomware attacks increasing across the financial sector, insurance providers including Cuvva, Sofía, and Pie Insurance have integrated Stripe Radar into their payments stack to combat evolving fraud threats.
In 2022 alone, Radar users benefited from a 41% reduction in disputed charges, showing how insurers are doing business differently with Stripe.