How SAP BRIM ensures frictionless billing & payment for insurance companies?
Insurance industries handle billions of Dollars of transactions every day. The operational challenges associated with building new capabilities make it difficult for insurers to ideate, plan, deliver, and manage seamless billing solutions. They have outgrown their traditional business models in terms of increased workload, but they still struggle with industry fragmentation, complex payment terms, and extensive manual processing.
Now the solution lies in shifting to a more consumer-centric insurance model. SAP BRIM is making inroads into the insurance sectors as it provides policyholders with more control and flexibility. It helps insurers shape their business strategy infused with an end-to-end subscription management solution.
Two Trends: Usage-Based Insurance & Bundled Services
SAP BRIM harnesses a breakthrough billing mechanism to facilitate usage-based insurance. In automotive industries, for example, rather than paying thousands of Dollars as a monthly premium, insurance companies can charge the premium based on the distance driven by the vehicle. SAP BRIM can navigate through this complicated billing landscape as it empowers the insurers to charge based on the kilometers or miles the customers drive.
This level of flexible billing increases customer loyalty and enables companies to position themselves in line with customers’ expectations and needs. Insurance businesses can promptly realize higher customer retention and create repeatable products and services, fueled by innovation.
SAP BRIM makes it easier for insurers to adapt the cost of insurance, including discounts in premiums, based on customers’ driving behavior. You can leverage Telematics to monitor automobile speed and overall driving safety to decide on discounting or surcharging the premium.
What are the practical benefits?
- Usage-based insurance is a fair model for all. SAP BRIM streamlines premium pricing, promotions, and offers.
- Through SAP BRIM, insurance companies can offer attractive billing plans for young drivers. They may be using their vehicles occasionally, e.g. driving only at the weekends. Usage-based premium payments save cost.
- SAP BRIM gives buyers extensive choice to change their coverages as their needs change.
- Risk-based premium brings insurers more stable revenue
In addition to standard insurance services, insurers can allow their customers to avail of new services in the automotive industries. The users can be benefitted from an array of ancillary services offered through a trusted network of providers.
SAP BRIM helps you to optimize traditional and usage-based insurance. Through third-party vendors, customers can have,
- Roadside assistance
- Extended warranty and maintenance
- Car washing
- Electric vehicle (EV) charging
All of these other services might not be provided by the insurance company. But the user can settle the payment and share the revenue with partners. SAP BRIM stitches the product bundles together and provides an integrated user experience, regardless of how many bundled offering.
Through connected car platform and apps, the driver can access all these services. Service providers can bill the driver for the services with SAP BRIM’s flexible billing and payment options.
Getting new insurance products to customers quickly to meet strategic objectives is a real operational challenge. SAP BRIM replaces legacy systems and enables insurers to configure fully–functional billing, claims, and general ledger systems into their ecosystem.
For core policy administration, billing, and claims, SAP BRIM implements new business capabilities, and thus automates business processes faster.
- For retail banking, SAP BRIM enables relationship pricing and bundling with payment cards, mortgages, and insurances
- For commercial banking, SAP BRIM provides an account analysis solution to help an insurer offer credit towards service based on the customers’ total deposits. Consolidated billing assists commercial banks in bringing on the charges on the monthly statements
- When it comes to clearing and settlement, SAP BRIM facilitates insurers to streamline tiered transaction fees and handle multi-party settlements
- Policy calculations for usage-based insurance, subscriptions charges for new products, and data monetization are made simpler with SAP BRIM
- Tailored recommendations, fast-track claims payouts, optimized billing and revenue cycle management, best-in-class solutions to add service bundles on-demand are added advantages of SAP BRIM
Eventually, SAP BRIM strengthens the relationship between an insurer and its policyholders with a robust billing and payment plans set-up. Industries can keep pace with the sweeping changes with SAP BRIM’s recurring billing solutions and offers steady cash flow and cost savings for both insurance companies and customers.