Streamlining Insurance Payments: Overcoming Fragmented Systems for Improved Liquidity
Insurers are currently grappling with significant challenges in claims finance, primarily due to fragmented systems and inadequate collaboration between teams. Recent research conducted by Vitesse has shed light on these issues, revealing that a mere 1% of insurers consider the collaboration between claims and finance teams as highly effective. This article delves into the findings of the report, highlighting the barriers faced by insurers and the urgent need for a unified financial infrastructure.
Key Findings from Vitesse’s Research
The report uncovers several critical insights regarding the state of claims finance in the insurance industry:
- Internal Complexity: A staggering 79% of insurers identify internal complexity as a significant barrier to efficient payment processes.
- Access to Liquidity: Approximately 66% of insurers report challenges in accessing readily available funds, with this figure rising to 74% in the United States.
The Urgent Need for Unified Financial Infrastructure
According to Philip McGriskin, CEO and founder of Vitesse, many insurers are making commendable efforts but are hindered by disconnected systems. He states, “When teams, systems, and partners lack shared visibility and control, friction becomes inevitable.” The transition from fragmented workflows to a unified financial infrastructure is an essential strategic priority for insurers aimed at modernizing their operations.
Regional Differences in Claims Finance Challenges
Regional disparities in priorities are also evident. Insurers in the US tend to focus more on governance and compliance, with 37% highlighting it as a top concern compared to only 22% in the UK. Furthermore, the challenge of accessing liquidity is more pronounced in the US, where nearly three-quarters of respondents cite it as a significant issue, as opposed to 58% in the UK.
Insights from Vitesse’s President
Curt Hess, president of Vitesse (US), emphasized the operational complexity faced by the US market, particularly in managing compliance and funds across multiple partners. He noted, “US insurers are more likely to prioritize governance and control, reflecting the real-world friction caused by complex regulations and decentralized systems.”
As the claims ecosystem becomes increasingly complex and regulatory pressures rise, the ability to access, view, and transfer funds efficiently will be a defining factor in future performance.
Vitesse’s Expansion and New Offerings
This report aligns with Vitesse’s ongoing expansion efforts in the US, marked by the launch of the Vitesse Trust Company — a New York-regulated entity that provides insurers with real-time control and clarity over their claims funds.
For more information on how insurers can improve their claims finance processes, visit our page on claims finance solutions.
In summary, the findings from Vitesse highlight the critical need for insurers to address the complexities in their claims finance operations to enhance efficiency and drive trust in their financial processes.
