Boosting insurer cashflow: the power of outsourced credit control
In today's competitive insurance environment, efficient and effective credit control is crucial. Late premium payments and aged debt can significantly impact an insurer's financial health, diverting cash flow from critical business operations and growth opportunities.
The challenges of in-house credit control
Many in-house credit control functions within insurance firms struggle with a lack of resources and manual processes. These issues often exacerbate:
- Aged debt: Identifying and resolving aged debt can be time-consuming and resource intensive.
- Chasing overdue payments: Repeatedly following up with brokers for overdue payments can be inefficient and frustrating for internal teams.
- Reconciliation issues: Data inaccuracies and reconciliation challenges can hinder timely payment processing and clear financial reporting.
- Non-payment notices: Issuing and following up on non-payment notices can be a laborious task, pulling focus from core activities.
- Lack of data-driven insights: Without robust data and analytics, it's difficult to identify trends, prioritise actions, and accurately measure performance.
Reducing mounting debt and freeing cash flow
By outsourcing credit control to a specialised provider like Velonetic, insurers can overcome these challenges and reap numerous benefits:
- Expertise and specialisation: Our team of experts deeply understands the unique complexities of the London insurance market, allowing the deployment of proven strategies to optimise debt recovery and minimise losses.
- Improved cash flow: A proactive approach to debt recovery accelerates cash flow, enabling insurers to reinvest in their business and drive growth.
- Enhanced operational efficiency: Streamlining processes and leveraging automation can significantly improve operational efficiency and reduce costs.
- Strengthened broker relationships: Pursue debt recovery while maintaining positive relationships with brokers and policyholders, ensuring continuity.
- Data-driven insights: Utilising advanced analytics helps optimise decision-making not just for debt recovery but across the entire insurance lifecycle.
- Regulatory adherence: Digital board packs provide evidence of the true position on debt held versus perception, aiding transparency.
- Scalability and flexibility: Scalable solutions adapt to the evolving needs of insurance businesses, whether handling seasonal fluctuations or supporting long-term strategic initiatives.
Final Thoughts: Strategic Credit Control for Insurers
Partnering with an expert insurance service provider like Velonetic offers more than just credit control services. Insurers can also benefit from related services such as accounts and reconciliation, risk capture, and intermediary services, providing a comprehensive solution.
To discover how Velonetic can help you tackle late payments and growing debt head-on