Digital payments FinTech company Dream Payments has rolled out the Dream Insurance Network in the U.S., which comes with instant payment options, ATM Marketplace reported.
The tool has Dream’s application programming interface (API), which integrates with insurance platforms, according to the report. Instant digital payments are made through J.P. Morgan and The Clearing House’s RTP network.
The API sends a notification to a customer, letting them know their claim is approved, the report stated. Then, they can go to a payment portal from the insurance brand and choose whether they want the payment through ACH, virtual card, check or instant digital payment. Finally, the payment is sent.
The software platform is integrated to the Dream API for automated claims payouts, according to the report.
“We are excited to power Dream Payments as they foster innovation within the insurance payments ecosystem — as our Wholesale Payments business continues to be the provider of choice for FinTech payments globally,” J.P. Morgan Global Head of Real Time Payments Cyrus Bhathawalla said in the release.
In other news, the pandemic has caused consumers to value insurance products more.
Franklin Madison Chief Financial Officer Preston Porter said in July that collection rates have gone up while attrition rates have fallen and response rates for insurance products have increased.
“We saw that it’s vital for [insurers] to be able to offer a wide variety of products to their consumers because their consumers need it and want it,” Porter said at the time. “The other thing that’s really important is being able to provide an insurance offer in the form that these customers want.”
Porter said the insurance industry will likely see more teamwork between new InsurTechs and more traditional insurance firms.