Reimagining insurance payments: Insights from experts

In a recent panel discussion hosted by Mastercard, industry leaders from Worldpay and other global acquirers discussed how insurers could reimagine payments as a driver of business value.

While payments have traditionally been viewed as a back-office function in insurance, the conversation revealed a growing recognition of their potential to improve customer experience, operational agility and long-term growth.

Here are the key insights from the session:

Understanding the opportunity

One of the initial questions was whether insurers fully understand the value of optimized payments. While awareness is certainly growing, the consensus was that there is still a considerable gap between recognizing their benefits and implementing the changes required to unlock them.

Historically, the insurance industry has been slower than other industries – such as retail and digital content – to adopt payment innovations. This delay is often attributed to the perceived costs of transformation, regulatory concerns and the complexity of existing legacy systems. Regional differences and variation across products also need to be considered when making changes, and it is important to get the right mix.

Despite these challenges, there are signs of progress. Many insurers are now looking to integrate payments more deeply, particularly around collecting premiums and paying claims. There’s an increasing focus on making these flows more seamless and embedded, rather than treating them as a back-end process.

This shift is partially driven by changing consumer expectations. As digital habits take root, policyholders expect smooth, secure and flexible payment experiences. Virtual credit cards were highlighted during the discussion as one example of an innovation gaining traction, especially for secure and efficient payouts.

Insurers are also beginning to understand the value of data generated through payments. Beyond reconciliation, there’s a growing interest in using payment data to support strategic decision-making, analyze customer engagement and prevent fraud.

Reducing complexity

One of the key challenges insurers face is the sheer complexity of their payments infrastructure. Whether it’s connecting with multiple partners, managing regulatory obligations or integrating with core systems, payments often feel fragmented and difficult to control.

The panel highlighted the importance of reducing this friction. Some insurers seek simple integrations that plug into existing platforms, while others are aiming to own more of the process, from billing to reconciliation and supplier payments.

What’s clear is that flexibility and control are essential. A payment strategy that reduces the number of moving parts can also reduce risk and improve stakeholder experience across the board.

Looking for tailored solutions

Another common theme was that insurers do not all operate the same way. Product lines, customer bases, regulatory requirements and operational setups all differ – meaning there’s no universal template that works for everyone. Rather than relying on rigid, off-the-shelf solutions, insurers are starting to look for more tailored, collaborative approaches.

This shift is prompting payment providers to move toward becoming strategic partners. Working together to design payment flows, from premium collection to paying claims and refunds, creates solutions that better reflect real business needs.

Even with promising technology and growing urgency for updated systems, many insurers still struggle to move forward. The biggest hurdle isn’t necessarily infrastructure, but inertia. The gap between knowing what’s possible and doing something about it remains wide for many organizations.

What helps bridge that gap is listening to customers, internal teams and trusted partners. Understanding specific friction points and building clear business cases can go a long way. Tailoring strategies to fit regional markets, local regulations and customer preferences is key. Flexibility, range of payment options and adaptable APIs are also becoming essential.

As the panelists noted, change won’t happen overnight. With the right mindset and support, though, it’s entirely within reach.

“Conversations like these are vital to bringing to insurance the data-driven, efficient user experiences and payments practices we’ve seen pioneered elsewhere in digital and financial services,” said Ainsley Merchant, Worldpay senior director of vertical growth for financial services. “Worldpay is committed to helping insurers navigate this change, and we are happy to partner with Mastercard to shape how the industry thinks about best practices.”

The insurance industry may be slow to start its payments transformation journey, but momentum is building. As payments become a central part of the customer and operational experience, insurers have a real opportunity to lead.

With collaboration, clarity, and a willingness to reimagine the role of payments, the industry can turn a historic cost center into a strategic advantage.

Ready to reimagine your payments strategy?

Whether you’re starting to explore payment modernization or looking to scale up, the right partnership can make all the difference. Worldpay works with leading insurers to reduce complexity, unlock growth and deliver smooth payment experiences that meet the demand of today’s policyholders.

Find out how we can help your business turn payments into a catalyst for growth.