By Frazer MacRea, CEO of Raimac
I spent last week at a Mastercard event with our partner, Cashflows, and walked away more convinced than ever: the insurance industry is right on the edge of real change — and the way we handle payments is going to be a big part of that shift.
Let’s face it: insurance hasn’t exactly led the way in payment innovation. While consumers now expect services to be flexible and seamless, many insurers are still using old-school models — annual lump sums or awkward direct debits. But here’s the twist: the data shows that customers are already engaging digitally and ready for more.
At Mastercard, some of the numbers were eye-opening:
- 91% of insurance payments are now made online
- 59% of customers save their card details
- 80% of those customers opt in for recurring payments
Yet despite that momentum, insurance still sees lower authorisation rates — about 7 percentage points below the average for digital commerce. That tells us there’s still too much friction in the process.
What really jumped out, though, was this: programmable payments aren’t just a fintech trend anymore — they’re becoming a real competitive edge.
Why It’s Time to Pay Attention
With programmable payments, insurers can go beyond standard monthly debits. Think of it as funding in real time, based on actual usage. Picture car insurance that adjusts automatically depending on how much you drive — giving customers a more accurate price, reducing risk, and improving satisfaction all at once.
We’re already seeing momentum in the UK:
- Card payments in insurance are up 19.4% year-over-year
- Digital wallet usage is up a massive 180%
- Providers like Cashflows saw 169% growth in card volume
The takeaway? Insurers that build real-time, flexible payment systems will be better equipped to meet today’s expectations. And beyond happier customers, they’ll benefit from things like more predictable cash flow from microtransactions and richer data for managing risk and claims.
Raimac’s Role in What’s Next
We’ve always believed that insurance should work around the customer — not the other way around. The Mastercard event confirmed that our programmable payment platform, especially for usage-based or installment models, is arriving at exactly the right time.
The industry has been slow to evolve, but the appetite is growing and the technology is ready. With the right partners, we’re not just predicting change — we’re helping build it.
To learn more or schedule a demo, contact us at [email protected] or visit raimac.io.
