In the dynamic landscape of insurance, innovation has become the key to not only survival but also prosperity. Amidst this whirlwind of change, one remarkable solution has emerged as a game-changer for the insurance industry – Insurance Premium Aggregation, or IPA. This innovative payment solution has taken the industry by storm, and for all the right reasons.
Streamlining Premium Payments
IPA is designed to revolutionize the collection and remittance of insurance premium payments. It introduces an automated, hands-off approach that transcends traditional methods, offering unmatched efficiency and reliability.
Simplifying the Employer’s Role
In the realm of Voluntary Benefits, employers often find themselves burdened with multiple responsibilities. They must select a broker or agent, grant them access to their employees, agree to receive invoices, collect payments from employees through payroll withholding, and ensure timely remittance of premiums every month. The intricacies of this process can be overwhelming for employers, diverting their focus from core business operations.
This is where IPA steps in as a savior. It relieves employers of this cumbersome burden and seamlessly transfers the responsibility to the employee. What’s more, it does so in an entirely automated manner, making the transition virtually imperceptible to the employee. This not only lightens the load on employers but also benefits employees by providing them with a streamlined process that can easily transition with them as they navigate their careers.
Ensuring Continuous Coverage
Traditional models often face a critical flaw – they tie the funding of insurance premiums to a specific employer’s payroll withholding processes. When an employee leaves their job, the funding mechanism departs with them, often leading to the lapse of insurance coverage. IPA ingeniously solves this issue.
IPA is implemented when an insured individual adds a secondary (or tertiary) disbursement to their employer’s payroll. This can be easily done using a US-based banking routing number and account number provided by iStream, the creators of IPA. The setup is as simple as providing this information along with the specific amount to be remitted each time payroll occurs.
Moreover, IPA offers flexibility by to enable individuals to provide banking or credit card information for funding, if their providers have selected those options. From there, IPA takes the reins, handling everything from splitting the lump sum into multiple providers/accounts to the seamless submission of funds and relevant data to insurance carriers.
A Win-Win for All
With IPA in place, the days of late and underpayments from consumers are gone. For insurance carriers, the frustration of waiting for payments from employers who may be using the collected funds for other cash flow purposes is a thing of the past. IPA ensures that funds, along with all supporting data related to the transactions, are sent on a pre-determined date. This simplifies Treasury Management and streamlines Accounts Receivable, eliminating uncertainty and boosting efficiency.
The true beauty of IPA shines through after the initial setup, requiring no further employer or employee interaction. It guarantees predictable and on-time submission of premiums, month after month, offering peace of mind to all stakeholders involved.
Insurance Premium Aggregation, or IPA, has ushered in a new era of efficiency and reliability in the insurance industry. By automating premium payments and removing the burdens placed on employers, it paves the way for a smoother, more streamlined insurance experience for all. With IPA, insurance companies can count on consistent and timely payments, while employers and employees can rest easy, knowing that their insurance coverage remains intact, regardless of career moves. It’s a win-win for everyone involved, and it’s reshaping the future of insurance as we know it.