The insurance sector has long been plagued by long wait times. No matter the stage of the insurance claim, be it filing claims or waiting for a refund, customers are often left dissatisfied with how long they must sit around for a response. To tackle this issue, Edenred Payment Solutions has launched a new Virtual Card Number (VCN) product designed to help make claims payouts faster and easier for policyholders.
Reimbursements can take weeks, but with Edenred Payment Solutions’ VCN product, this wait time can be cut down. This will be greatly appreciated by the industry as according to research from Sollers Consulting and Ipsos, 63 per cent of UK customers consider a quick claims handling process as one of their top expectations from their insurer.
Rehana Mitha, managing director at Edenred Payment Solutions, says: “Virtual cards and embedded finance are transforming the insurance industry by streamlining the claim payout process. These technologies enable instant access to funds; eliminating delays and reducing paperwork for policyholders, while also offering insurers better transparency and fraud prevention tools.
“By simplifying reconciliation, improving security, and tailoring card usage to specific claims, virtual cards deliver significant benefits for both insurers and their customers. As one of the most widely used financial products, insurance is ripe for innovation, and we’re excited to help drive this change.”
Through the VCN product, policyholders can get immediate access to approved claim funds through a virtual payment card. These cards can be easily added to mobile wallets like Google Pay and Apple Pay, allowing direct payments to service providers or merchants without the usual delays. Policyholders can then use the cards at pre-approved merchants tailored to their claim, offering a seamless experience, whilst minimising fraud risk for insurers.
Benefits of virtual cards in insurance
There are a variety of benefits insurance firms can experience by integrating Edenred Payment Solutions’ virtual cards in insurance. Firstly, they can easily manage funds while ensuring their compliance and protection at all times. This is made possible by setting up e-money accounts that are integrated with and utilise payment schemes such as Faster Payments and SEPA.
Additionally, each virtual card is generated with a unique card number, expiration date, and security code, making claims payouts simple. Simple payouts aren’t the only benefit though – insurers also have better control and security as they can set limits and restrict spending to specific categories to ensure proper use.
Ultimately, the biggest benefit is speed and with the VCN, the entire claims process will be streamlined. It will automate the reconciliation of invoices with claim payouts, and reduce paperwork and delays. This results in a more efficient workflow for insurers and a better experience for policyholders.
By combining automation, flexibility, and speed, this solution redefines the claims payout process, delivering better outcomes for both insurers and their customers.
Rich Logan, product director at Edenred Payment Solutions, added: “Our new Virtual Card System represents a major leap forward in how insurers can handle claims payouts. The ability to integrate seamlessly with existing systems means that insurers can adopt this solution quickly, minimising disruption while maximising impact. We’re proud to be leading this shift towards smarter, faster, and more secure claims processes.”
The implementation can be replicated for new clients in as little as two months, including agent training and creating a customised dashboard tailored to their needs. Already live with a large multinational French insurance company, the solution has allowed the insurer to issue cards quickly, track transactions, and maintain consistent branding on their digital card.
