Integrating A2A Payments into Your Insurance Payment Operations | Dwolla

Insurers can leverage the power of A2A payments to achieve a complete overhaul of their payment workflows. By integrating pay by bank payment solutions through robust APIs, they can seamlessly connect their existing systems with real-time bank transfers. This eliminates the need for manual data entry and check processing, freeing up valuable resources, and minimizing errors. The result? A streamlined and automated payment process that boosts efficiency and reduces administrative costs.

Integrations between A2A technology and existing systems is the key to unlocking a smoother, faster, and more cost-effective payment experience for insurance companies and their policyholders.

Integrating Dwolla

Leveraging a RESTful API and intuitive SDKs, Dwolla empowers developers to effortlessly integrate secure A2A payments into their insurance applications. They can use the insurer’s current banking relationships, maintain a branded payment experience, and enjoy the benefits of a fast, efficient, flexible, and scalable solution. Whether the insurer is leading a digital transformation, scaling their business, or simply seeking better policyholder interactions, Dwolla has you covered.

Here’s the flow:

• Direct banking connections: Dwolla handles the heavy lifting, working directly with financial institutions to initiate payments on an insurer’s behalf. No need to manage the complexities involved in integrating with banking partners.
• New policyholder sign-up: This process begins when new policyholders sign up for insurance policies and provide their bank account information to authorize and set up automatic payments. 
• Automated payment flows: Each month, insurers initiate transfer requests to push/pull funds between their existing commercial bank account and the policyholder’s bank account for monthly premiums or to pay out claims through Dwolla’s API. Once received, Dwolla shares payment instructions for the transfer request with the financial institution that will be the Originating Depository Financial Institution (ODFI) for the transaction. This information allows the financial institution to push or pull funds between the commercial bank account and the policyholder's bank account, crediting or debiting the business’ commercial account for the appropriate transaction amount. 
• Real-time updates: The financial institution notifies Dwolla, and Dwolla passes automated webhook notifications back to the insurer, providing them with updates on the payment status. 

As a modern solution for the insurance space, Dwolla provides a flexible, secure, and reliable approach for companies navigating policyholder expectations, financial institution partners, and rapidly evolving technology. Through Dwolla’s ease of use and integration, insurers and technology platforms can confidently modernize their payment processes and operations to eliminate legacy systems and improve cash flow and payment predictability. 

The use cases below demonstrate how Dwolla’s payment processing platform works for insurance companies. 

Digitally Transforming Processes with Electronic ACH Payments

When one pet insurance company spent up to seven days processing reimbursements through manual ACH transfers and paper checks, the search began for a comprehensive payment platform that would reduce processing times and create efficiencies. Dwolla emerged as the solution for this insurance company, saving the company over 92% in costs with automated ACH payments. 

By implementing Dwolla, this pet insurance provider reduced the reimbursement processing period, reaching policyholders five days sooner. Electronic ACH payments made this 800% improvement in reimbursement efficiencies possible. Now, this company can rely on Dwolla’s API to provide a fast, versatile, secure and cost-efficient solution.

Embedding ACH API in Insurtech

For another pet insurance company, manual payment processes slowed business operations, impacting growth and policyholder experiences. After embedding Dwolla’s API solution, this insurance provider automated disbursement processes and increased transaction volume by 45% over 12 months.

Dwolla replaced this pet insurance company’s manual process, enabling faster reimbursements via ACH in 1-2 days. Dwolla’s flexible, scalable, and efficient solution enhanced the policyholder experience while saving the insurance provider valuable time and resources.

Interested in learning more? Check out our latest guide: Understanding A2A Payments and Their Role in Insurance Payment Processing.