Today’s workers’ compensation market is more competitive than ever.  With more carriers in the space and premiums dropping, all five of the top workers’ comp carriers are now offering “Pay-as-you-go” billing options to boost customer acquisition and retention.

 

Based on our analysis of our 30+ carrier customers, Pay-as-you-go billing can not only improve customer retention by up to 10%, but it can also reduce uncollectible premiums/bad debt up to 75% and reduce audit costs up to 50%.

 

In as little as 30 days, carriers can now offer customers Pay-as-you-go billing (connected to 2,000 + payroll providers) using our white-labeled solution.  In the sections below, we’re going to demonstrate how InsurePay Pay-as-you-go works.

Once a business owner buys a policy with a Pay-as-you-go billing option from their agent, a policy will be issued by a carrier in the same fashion as any other bill plan.

Typically, carriers will submit the following information to InsurePay Pay-as-you-go via web service integration:

  • Policy number and effective/expiration dates of coverage
  • Policyholder’s name, EIN, and address
  • Policyholder contacts, phone and email address
  • Rating data (eligible state(s), class code(s), est payroll/premiums)
  • Total policy premium

InsurePay Pay-as-you-go Automatically Collects Payroll Data and Calculates the Premium

Once an account is created, InsurePay Pay-a-you-go will request information from the policyholder’s payroll company or the policyholder if they prefer to self-report. This information will then be used to automatically calculate the premium (even for different employee classifications) for the payroll period.

InsurePay Pay-as-you-go will calculate the premium amounts based on the payroll check date submitted by the payroll provider or policyholder. After that InsurePay Pay-as-you-go will send out an email to notify policyholders about the amount to be withdrawn from their authorized bank account.

Along with calculating the premium amounts, InsurePay Pay-as-you-go will also automatically implement key individual minimum and maximum payroll amounts and capping rules for all NCCI states and independent bureau states (some exceptions may apply).

InsurePay Pay-as-you-go Automatically Collects Payroll Data and Calculates the Premium

Once an account is created, InsurePay Pay-as-you-go will request information from the policyholder’s payroll company or the policyholder if they prefer to self-report. This information will then be used to automatically calculate the premium (even for different employee classifications) for the payroll period.

InsurePay Pay-as-you-go will calculate the premium amounts based on the payroll check date submitted by the payroll provider or policyholder. After that InsurePay Pay-as-you-go will send out an email to notify policyholders about the amount to be withdrawn from their authorized bank account.

Along with calculating the premium amounts, InsurePay Pay-as-you-go will also automatically implement key individual minimum and maximum payroll amounts and capping rules for all NCCI states and independent bureau states (some exceptions may apply).

InsurePay Pay-as-you-go Creates Daily Remit Files to Assist with Account Reconciliation

Next, InsurePay Pay-as-you-go will generate a daily remit file which can be used by a carrier’s finance department to reconcile payments. This file will include information about each day’s pay-as-you-go billing transactions, such as:

  • New billings
  • Re-billings of failed transactions
  • ACH returns

Furthermore, it’s also possible to update a policyholder’s information throughout the policy lifecycle.  Whether it’s a renewal, endorsement, reinstatement, or cancellation, InsurePay Pay-as-you-go makes it easy to update information and keep premium payments in sync at all times.

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Next Steps

InsurePay has been successfully helping carriers of all sizes implement Pay-as-you-go billing.  If you’re thinking about partnering with a solution provider and would like to learn more, we’d love to help you out.  

Get started
with InsurePay today!