The new option is a broadening if the insurer’s Digital Pay solution enabled by Fiserv’s Carat.
The largest home and vehicle insurer in the United States, State Farm, has announced that it is expanding the insurance claim payouts options available through Digital Pay so that they can be instantly received in a policyholder’s PayPal account.
Digital Pay allows customers to have their claims reviewed, approved and paid online.
When filing through Digital Pay, policyholders have the opportunity to choose from among several payment methods for insurance claim payouts. These transaction methods can include everything from a transfer to a bank account, to a debit card, or to any of several digital wallets including PayPal. Customers who choose to be paid digitally will receive the funds they are owed nearly instantly.
Fiserv’s Carat enables Digital Pay. Carat is a global operating system designed to provide a simple and unified experience to enterprise merchants. It makes it possible for payments to be enabled at any time and anywhere, to optimize commerce across channels, and to use embedded finance delivery that will form new customer experiences.
“As more consumers use digital wallets to manage daily financial tasks, we’re giving State Farm customers more options for how they receive payments,” said the insurer’s Operations Vice President Schuyler Schupbach in a recent State Farm news release. “As an insurance industry leader, we’re always looking for ways to improve the customer experience. Together with Carat, we’re not just simplifying payouts, we’re creating better customer experiences by adding choice and convenience to the claims process.”
The Digital Pay initiative for digital insurance claim payouts was originally launched in 2021.
Digital Pay was developed to provide the insurer’s policyholders with new insurance claim payouts options for having their claims approved for instant payments. The goal of its launch was to eliminate the complexity sometimes associated with receiving payments, while simplifying disbursements and boosting overall customer satisfaction with the experience.
“Carat is working with industry leading organizations like State Farm to deliver flexible digital payout solutions that people want and need,” said Carat Senior Vice President and Head of Global eCommerce Casey Klyszeiko in the same news release about the digital insurance claim payout options. “As businesses work to create positive new consumer experiences, the ability to simply and instantly pay out funds is a significant differentiator and driver of customer satisfaction.”