Insurance Company Improves Policy Lapse Rates

In this case study, we cover our work with a supplemental health insurance provider offering dental and gap coverage. Due to the high-risk industry in which they operate, traditional payment processors weren’t able to support them properly, leading to lost revenue and limited ability to scale. We stepped in to provide them with specialized high-risk credit card processing to ensure they could grow their business on their terms.

The Challenge: Payment Issues and Lost Accounts

This client suffered from high policy lapse rates due to failed credit card payments. These failed payments were due to various issues, including:

Expired credit cards
Declined transactions
Chargebacks

As a result, many policies were dropped unexpectedly, and their risk profile was elevated, and their merchant account with a generalist payment processor was flagged, which limited their ability to accept payments.

Overall, this resulted in lost revenue, higher overhead for billing and reinstatements, and limited ability to scale because of inconsistent support from their merchant account as it was repeatedly flagged.

The Solution

SeamlessChex deployed our specialized high-risk credit card processing solution for this insurance provider, setting them up with recurring billing that featured automated payment retry logic to reduce the number of policy lapses due to failed payments.

To ensure that their customers were properly informed about payments and remedies to avoid losing their policies, our payment platform also sent proactive notifications about upcoming charges and declined payments.

Key SeamlessChex Features for our Insurance Partner

Recurring BIlling	Our credit card processing platform allowed them to continue their regularly scheduled recurring payments without interruption.
Automated Payment Retry Logic	The SeamlessChex platform offers automated logic that determines when it is appropriate to retry a payment based on how and why the payment failed in the first place, allowing some missed payments to be covered shortly after their intended transaction date.
Proactive Notifications	Our automated notification system ensures that policyholders receive reminders before payments hit and are notified whenever they are declined so they can remedy the issue before a policy lapses.
Branded Checkout	The SeamlessChex payment processing platforms are developer-friendly and brandable so that our clients can put their own branding on our payment gateway.

Overall, the SeamlessChex platform reduced costly payment failures and made it easier for policyholders to stay engaged with their coverage.

The Results

As a result of their partnership with SeamlessChex, our client experienced the following results:

Fewer Missed Payments

Fewer Missed Payments	Improved Payment Consistency	Seamless Customer Experience	Reduced Administrative Workload
Our client experienced up to 60% fewer missed payments when compared to other insurers in their industry.	65% of policyholders enrolled in recurring billing right away, improving the consistency of incoming payments to our client.	Our branded checkout experience with automated reminders increased on-time payment rates by 20-25%.	As a result of all of the aforementioned improvements, time spent on re-billing and policy reinstatement was reduced by 30-40%.

Overall, our client sought out a merchant account that wouldn’t flag them for their increased risk profile, and they got a transformative credit card payment system that proactively mitigated their risk factors and improved their bottom line.

Get the Best High-Risk Credit Card Payment Processing

SeamlessChex offers modern, specialized credit card processing services for high-risk businesses that go beyond simply supporting them without account flags or freezes. We work alongside our partners to actively reduce chargebacks, fraud, and failed payments while improving the customer experience and streamlining internal workflows.

‍For more information, contact us to learn how our quick and cost-effective credit card processing can help your business grow.