Seamless insurance: optimising payments for better customer journeys and fraud prevention

The insurance industry is in the midst of a digital transformation. As consumers purchase more online, the benchmark for insurance business has shifted. 

This trend is being accelerated by Gen Z and Millennials becoming a significant segment of the insurance customer base. They expect their payment experience to be seamless, whether they are booking a trip, buying a computer, or purchasing insurance.  

From having their preferred payment method at sign up, to frictionless recurring billing –  customer standards are higher than ever before. 

Another major challenge in the industry is fraud. As risks become more complex and diverse, new approaches are helping innovative insurers reduce this seemingly intractable problem.

But what does that specifically mean in terms of opportunities for insurers in Australia?

Within the industry, digital-first insurers are building customer journeys and low-cost business models are capturing market share and driving innovation, while incumbents are grappling with legacy systems that affect operational performance. Yet for new entrants and incumbents alike, lowering cost to serve is a critical ongoing challenge.

Our research reveals that getting the checkout experience right by offering popular payment methods, supporting recurring payments, and taking a different approach to claims payouts are key. By understanding these opportunities and leveraging technology to solve the challenges around them, insurance companies can drive sustained, long-term growth and lower their cost to serve. 

The stats in this deep dive are from The Adyen Index: Australian Digital Report, which combines business and consumer data from 2024 across 23 markets.