Premium collection represents insurance carriers’ primary revenue stream, yet many insurers still use payment systems creating unnecessary friction for policyholders and inefficiencies for operations. Modern premium collection platforms designed specifically for insurance improve payment success rates, reduce processing costs, enhance customer experience, and provide data driving better business decisions.
Premium Collection Challenges
Insurance premium collection differs fundamentally from retail transactions. Payments are recurring on monthly, quarterly, or annual cycles. Policy renewals create payment timing complexities. Installment plans require automatic billing. Failed payments risk policy lapses and lost customers. Late payments create collection headaches. These unique characteristics demand specialized payment infrastructure.
Generic payment processors don’t understand insurance billing cycles, causing problems: rigid payment scheduling incompatible with policy dates, poor failed payment handling risking lapses, limited payment method options frustrating modern consumers, manual reconciliation consuming staff hours, and compliance gaps creating regulatory risks.
1. Revitpay
Revitpay provides premium collection infrastructure specifically designed for insurance carriers, handling the complexity of recurring insurance payments, policy renewals, installment plans, and multi-channel payment acceptance through systems built for insurance operations.
Automated recurring payments are the platform’s foundation. Policyholders enroll once and premiums deduct automatically on scheduled dates-monthly on the 15th, quarterly at renewal, or any schedule matching policies. Customers avoid late payments and policy lapses while carriers ensure steady cash flow.
Payment method flexibility meets modern consumer expectations. The system supports credit and debit cards for convenience, ACH bank transfers for lower processing costs, digital wallets (Apple Pay, Google Pay) for tech-savvy customers, and even checks for traditionalists.
Failed payment management prevents policy lapses. When payments fail, the system retries automatically on intelligent schedules, sends payment failure notifications to customers immediately, updates payment methods when customers provide new information, and escalates to policy lapse prevention workflows.
Renewal payment handling is crucial for insurance. As policies renew, premium amounts often change. The system updates recurring payment amounts automatically, notifies customers of changes before renewal, processes first renewal payments seamlessly, and ensures continuous coverage without payment gaps.
Installment plan management automates payment scheduling and billing. Customers choosing monthly installments get automatic billing on their chosen dates. The system handles payment application to installment balances, tracks remaining payments, sends upcoming payment reminders, and manages payoff when customers pay in full.
Self-service payment portals empower policyholders to manage their premium payments: view payment history and upcoming charges, update payment methods and billing information, change payment dates within allowed windows, pay ahead or make additional payments, and access receipts and payment confirmations.
Integration with policy administration systems ensures payment data syncs automatically with policy records. When premiums process, policies update immediately. No manual reconciliation, no gaps between payment systems and policy management.
Compliance and security are built-in with PCI DSS compliance for card processing, encrypted payment data storage, fraud detection and prevention, automated escheatment handling for unclaimed refunds, and regulatory reporting for insurance requirements.
2. Duck Creek Payments
Duck Creek offers premium collection integrated with their policy administration platform, enabling seamless payment processing within insurance core systems.
3. Majesco Premium Collection
Majesco provides premium collection capabilities within their insurance platform suite with flexible payment plans, automated collections, and customer self-service portals.
4. EIS Premium Payments
EIS offers premium collection as part of their cloud-native insurance platform handling global premium collection with multiple payment methods and currencies.
5. Vertafore Payment Solutions
Vertafore provides payment processing for independent insurance agencies and carriers using their management systems with integration enabling premium collection within existing workflows.
Optimizing Premium Collection
Insurance carriers should evaluate premium collection systems on processing fees, payment method coverage, failed payment retry intelligence, integration with existing policy administration systems, customer self-service capabilities, compliance and security features, and reporting depth.
Bottom line: Modern premium collection systems transform insurance operations. The right platform reduces processing costs, improves payment success rates, enhances customer experience, and provides data driving better business decisions.
