Claims transformation doesn't end at adjudication. It ends when the payment reaches the claimant.
That "last mile" of the claims journey is where insurers either deliver on their promise or fall short. Yet, despite years of investment in digitizing premium collection, many carriers still rely on outdated, manual processes when it comes to claim payouts.
In a recent Claimversation, Benekiva CEO Brent Williams joined One Inc's Mike Fidler and Jordan Hunt to explore why modernizing claims payouts is critical to improving customer experience, reducing operational costs, and unlocking long-term growth.
Insurance claims are rarely routine. They often happen during emotionally charged moments, times when clarity, speed, and trust matter most.
As Mike Fidler explained, the payout is where a carrier truly fulfills its promise. It's the final interaction in the claims process, and it leaves a lasting impression. A delayed or unclear payment experience can overshadow everything that came before it, while a seamless one builds trust and reinforces brand loyalty.
Jordan Hunt reinforced this idea with a simple analogy: even a delayed consumer refund can create lasting frustration. In the context of insurance, where the stakes are significantly higher, that frustration becomes a defining experience.
For carriers, this means that claims payment experience is no longer just an operational function. It's a core driver of customer satisfaction and retention.
Despite its importance, payout modernization remains one of the most complex areas in insurance.
Carriers must navigate:
Even transitioning from checks to ACH introduces friction, particularly when attachments like explanations of benefits are involved. These complexities often lead to a disconnected experience, where a fully digital claims process ends with a manual payout.
As Brent Williams noted, this creates a jarring shift—one that undermines the value of earlier digital investments.
A best-in-class claims payout experience goes far beyond simply replacing checks with ACH. In 2026, modern payouts are defined by digital experience, payment flexibility, and real-time transparency.
Claimants expect intuitive, step-by-step guidance across devices, whether they're on desktop, mobile, or tablet. Uploading documents, selecting payment methods, and completing actions should feel seamless.
One of the biggest drivers of dissatisfaction is uncertainty. Modern systems provide real-time visibility into payment status, reducing confusion and eliminating the need for follow-up calls.
Today's claimants expect choice. That includes:
The payout experience should feel like a natural extension of the carrier's brand—not a disconnected bank process.
One of the key insights from the discussion is that payment preferences are not one-size-fits-all.
For carriers, this means that offering a single payout method is no longer sufficient. Flexibility is essential to meeting diverse customer expectations.
Preneed insurance introduces an entirely different dimension to claims payouts. Unlike traditional claims, these payments are typically made to funeral homes, creating a business-to-business (B2B) payment experience. This requires:
Funeral homes, like claimants, expect speed and transparency. Delivering on these expectations strengthens partner relationships and improves overall efficiency in the claims process.
Modernizing claims payouts isn't just about improving experience. It delivers measurable business outcomes.
One of the most common inquiries insurers receive is: "Where is my payment?" Real-time visibility significantly reduces these calls.
Automation and digital workflows improve speed and reduce errors.
A smooth payout experience builds confidence and strengthens relationships.
Carriers distribute billions in claims each year but often retain only 1–5% of that value in future business.
By improving the payout experience, insurers can create opportunities to:
However, as Brent Williams emphasized, retention starts with experience. A poor payout process eliminates the opportunity before it begins.
For carriers looking to modernize claims payouts, the path forward can start with a few foundational steps:
These steps lay the groundwork for a more comprehensive transformation over time.
The insurance industry has made significant progress in digitizing how it collects money. The next frontier is transforming how it pays it out.
Because ultimately, the claim isn't complete until the payment is delivered—and how that payment experience unfolds defines the entire customer journey.
Claimversations brings together industry leaders to explore the real challenges and opportunities in claims.
Ready to see how Benekiva can modernize your claims payout experience? Let's talk.
