Life insurers could pay death benefits through virtual credit cards

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What would you like to know

  • One Inc. claims settlement company already works with many P&C insurers.
  • One of his major relationships is with John Hancock.
  • The company recently hired a CEO who is not from the payments industry.

Life insurers may soon be paying more claims through virtual payment cards.

Traditionally, many life insurers have been so conservative that they have refused to accept payments made by credit or debit cards, let alone put money on the cards.

But One Inc., a Folsom, Calif., Insurance payments company founded in 2006, recently forged a relationship with Mastercard, a New York-based payment card giant.

MasterCard will work with One to combine Mastercard’s Mastercard Send payment program with One’s ClaimsPay benefits payment program.

One has marketed the ClaimsPay program extensively to issuers of personal property and damage protection products, such as home insurance, but one of One’s relationships is with John Hancock,

A claim payment delay?

Today, John Hancock pays death benefits primarily through checks, an online checking account, or electronic funds transfers.

Even on the property and casualty side, where many issuers are keen on promising customers prompt payment, U.S. issuers still pay about 75% of claims by sending paper checks, One reports.

With the new One-Mastercard program, a life insurer could also pay for life insurance benefits, annuity benefits, or other benefits through online payment cards.

The new approach could be particularly useful for younger beneficiaries who are new to checking accounts, or beneficiaries outside of the United States, who may be in countries with different electronic funds transfer agreements and no processing operations. of checks remaining.


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