Insurance carriers today are faced with a challenging balancing act. 

Skyrocketing prices have put cost reduction top of mind. Simultaneously, the effortless consumer experiences we encounter every day (think: making a purchase on Amazon or ordering takeout on Uber Eats) have redefined what constitutes a truly seamless customer experience.  

As more carriers are discovering, embracing paperless billing for insurance premiums easy way to have the best of both worlds. 

While the concept isn’t new, the urgency and value of going paperless have never been clearer — especially for insurers looking to streamline workflows, improve policyholder satisfaction, and future-proof their billing operations. 

The Case for Paperless Claims Disbursements

Many insurance carriers have started experiencing the benefits of automation, but there are still plenty of paper-based processes holding back maximum efficiency. A critical area is claims disbursement. 

According to Datos, the majority of claims payments are still paid via check despite this process being slower, less transparent, and much more expensive to manage than digital disbursement. Even though paper is still the most prominent form of payment, 73% of companies report that they are currently transitioning to digital claims payouts. 

It could easily be argued that foregoing paper for claims disbursements should be top priority for carriers. When claims are filed, policyholders need those critical funds as quickly and efficiently as possible. For insurers to truly make good on their promise, they must have digital disbursement options at the ready.

The Benefits of Digital Disbursements and Paperless Billing for Carriers 

Today, both premium billing and claims disbursements are ripe for transformation. 

This dual focus — modernizing both premium collections and claims payments — has been shown to help carriers conserve resources, prevent fraud, and make good on their promise when policyholders need them most. 

Here are three key benefits insurers can realize by moving away from paper bills and checks:

1. Significant Cost Savings

One of the most impactful benefits of going paperless is the significant cost savings. A single bill costs approximately $1 to print, without taking the impact of inflation into account — paper prices have risen approximately 6% year-over-year since 2020, impacting both billing and claims. 

Not to mention, bills only account for a fraction of the paper notices and premium reminders most carriers send in a fiscal year. 

Driving paperless billing enrollment among your policyholders can make a significant dent in this cost. Successfully encouraging this shift to paperless has already saved carriers nationwide thousands each year, freeing up funds that can be reallocated to improve infrastructure or address other organizational needs.

Watch the video below to see how AFR Insurance saved $95k in print and mail expenses.

2. Save Valuable Time

Manual processing slows both billing and claims. From printing invoices to stuffing envelopes to mailing claim checks, each step eats into staff time. 

Improving these processes with automation frees up Customer Service Representatives (CSRs) to better serve policyholders, giving staff the time to provide personalized policyholder care or focus on high-value projects that can positively impact the company. Digitizing these processes accelerates everything — which is particularly critical for claims. Digital disbursements, especially after catastrophic weather events, ensure policyholders get the help they need, when they need it most. 

By going paperless across the board, carriers reduce overhead, empower their CSRs, and help customers rebound from loss faster. In fact, a recent Digital Insurance survey found that 74% of insurance professionals consider immediate digital access to funds as very important or essential for claimants. By automating claims workflows, insurers can significantly shorten the payout timeline — boosting efficiency and enhancing policyholder satisfaction during high-pressure situations like natural disasters.

3. Fewer Missed Payments and Policy Cancellations

In recent years, mail-related delays have caused a rise in late and delinquent premiums. For insurers, these delays interrupt revenue and can even trigger late notices that must be printed and mailed to the “delinquent” insured. 

If the bill has been paid, receiving this late notice is sure to cause confusion for your policyholder. They’re likely to call your CSRs, taking up additional staff time. 

The same delays can affect claims disbursement, keeping funds from reaching customers during critical recovery windows. 

The real-time nature of paperless billing and claims allows carriers to reduce this extraneous work and avoid unnecessary policyholder frustration. Encouraging timely payments from customers who can pay – but were historically delayed by paper bills and mailed-in payments – means healthier revenue streams for the carrier and fewer policy cancellations. For claims, payments are fulfilled faster, improving recovery timelines and policyholder trust. 

Encouraging Paperless Billing Enrollment 

Reaching 100% digital billing and payments is every biller’s ideal state. Reducing (or, ideally, eliminating) paper-based processes means time and money saved, peace of mind for billers, and convenience for customer. 

Download the free ebook, “Preparing Insurance Carriers for a Paperless Future,” to evaluate if your agency can accommodate a surge of paperless billing and payment adoption with your current system.