Northbridge Financial, a Fairfax company, has become the first insurance provider in the Canadian insurance market to digitalize its disbursement capabilities. The digital payments platform is being provided by Mastercard in collaboration with the cloud-based payment processor Dream Payments. With the partnership, FairFax Financial will digitally transform all its payments relating to collection and disbursements of funds through checks to improve customer experience, create operational efficiencies and reduction in fraud.
The company will render its services through MasterCard Send, the electronic payment service by MasterCard. The collection and sending of payments to the customers through MasterCard Send will be facilitated by Toronto-based Company Dream Payments Hub. The digitalization of payouts will help the customers to receive funds instantly to their prepaid card, mobile wallet, bank account, or debit card. With quick and seamless financial flow between the insurance company and customers, the new service will eliminate the major pain points for the customers of depositing checks and waiting for the funds to enhance the customer experience.
In the country with approximately CAD$30 billion being paid out every year in insurance claims, shift to the electronic payments will be major step towards modernizing the business processes. The digital transformation will streamline the complete insurance operations from pricing to claim processing, payments and customer servicing. The insurance companies stand to benefit from the huge saving generated from the avoidance of paper checks. The insurance firms will save a lot of money from the cost cutting for the call centers which will have no customer calls relating to the check inquiries.
The insurance industry opens up a plethora of opportunities for deployment of prepaid card and mobile wallet companies. Identifying these growth prospects, MasterCard and Dream Payments in partnership plans to expand its payment solutions beyond faster claim disbursements to collection of insurance premium from customers and payments to workers and suppliers.
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