Insurance industry payments network One Inc has launched a partnership with US Bank.
The mentioned collaboration was announced last Thursday, November 21st. As part of this partnership, US Bank’s money movement and banking capabilities will be combined with One Inc’s ClaimsPay and PremiumPay solutions for property and casualty (P&C) and life insurers.
In a joint press release of the parties to the cooperation, it was noted that the interaction of a financial institution and a payment network in the future will help accelerate the use of instant transactions in the insurance industry. It is worth clarifying that in this case payment transactions are meant.
It was also noted in the press release that US Bank participated in the first payment in the RTP Network and became a partner in the launch of the FedNow Service. As a result of combining the capabilities of a financial institution related to instant payment transactions with One Inc’s insurance-focused Digital Payments Network, the insurance carriers receive the opportunity to deliver faster payment solutions for outbound claims payments.
This year, during a conversation with media representatives One Inc chief executive officer Ian Drysdale said that insurance is one of the most complex markets on the planet. According to him, digital overhaul is sorely needed in the relevant space, since $500 million paper checks are still circulating in the United States alone.
Currently, for companies like One Inc, the goal is to transform paper payments into electronic ones, automatically reconciled in back offices. The development of the digital payments network of this firm, which connects far-flung stakeholders, bolsters the user experience.
Ian Drysdale stated that the insurance industry has made some progress. In this context, he noted that five years ago insurers were two decades behind other industries in terms of entering the e-commerce market focused on mobile. According to him, insurance technologies have helped to improve digitalization. At the same time, he noted that the insurance industry is still far from offering experiences like Amazon or Netflix.
As we have reported earlier, US Bank Expands Its Partnership With Edward Jones.
