Embracing next-generation international premium payment solutions
Manny Socorro, Strategic Account Director at Flywire, tells us why global insurance companies must adopt new technology solutions
As the global insurance landscape continues to evolve in 2025, carriers face mounting pressure from digital-native competitors, evolving customer expectations, and the ongoing need for operational efficiency. Insurance companies that can streamline their international payment processes while delivering superior customer experiences will gain a competitive advantage.
Despite significant technological advances across the insurance industry, one critical area remains surprisingly underdeveloped: international premium payment processing.
The payment gap
Today's insurance landscape presents a stark contradiction. While carriers have invested heavily in artificial intelligence (AI)-powered underwriting and digital claims processing, their payment infrastructure often feels outdated. Most international policyholders still face limited payment options that don't align with their local banking systems, preferred payment methods, or currency preferences.
Consider the modern consumer expectation: they can instantly transfer money globally through fintech apps and make crossborder purchases with a tap. Yet when paying insurance premiums, they're often forced into outdated processes involving manual forms, expensive wire transfers, or credit cards with punitive foreign exchange fees.
Why insurance payment technology has lagged
The insurance industry's payment infrastructure challenges stem from several interconnected factors:
• Legacy system complexity: many carriers operate with a patchwork of payment solutions accumulated through mergers and regional expansion, creating operational inefficiencies and inconsistent customer experiences
• Limited global infrastructure: traditional payment processors have historically underserved insurance premiums – high value, infrequent payments – particularly in emerging markets.
• Cost acceptance: carriers have accepted high payment processing costs and operational complexity as necessary evils, but tightening margins make these trade-offs unsustainable.
The real cost of payment friction
A Brazilian professional paying their USD-denominated global health insurance premium must visit their bank, complete extensive paperwork, pay currency conversion fees, and wait weeks for transfer completion. During this period, their coverage may lapse. Credit card alternatives add 4–6% in foreign transaction fees and unfavourable exchange rates.
For back-office operations, collections teams spend disproportionate time reconciling payments across multiple systems, chasing delayed transfers, and resolving payment discrepancies without adequate transaction visibility.
The strategic imperative
Recent industry research indicates that 78% of insurance executives identified payment digitisation as critical to their competitive strategy. Modern consumers and businesses expect payment processes that are instant, transparent, local, secure, and mobile-optimised.
Carriers failing to meet these expectations risk customer defection to more digitally sophisticated competitors.
Building a future-ready payment strategy
Successfully modernising international premium payment processes requires:
• Unified global payment platform: consolidating onto platforms that handle diverse payment methods, currencies, and regulatory requirements through single integration
• Local payment method integration: supporting region-specific preferences – from European bank transfers to Asian digital wallets – reduces friction and improves conversion rates
• Dynamic currency optimisation: allowing local currency payments with transparent, competitive exchange rates improves customer experience and can generate additional revenue
• Automated reconciliation: integration with policy management systems eliminates manual work and provides real-time payment visibility.
The path forward
As we progress through 2025, successful insurance companies will recognise payment experience as core to customer experience and competitive differentiation.
In an increasingly competitive market, carriers that act decisively to eliminate payment friction will be best positioned to retain existing customers, attract new ones, and build operational efficiency for long-term success.
Manny Socorro
Strategic Account Director, Flywire
Manny brings nearly 30 years of experience in the insurance and payments industries. His career spans leadership roles at major organisations including Morgan Stanley, JP Morgan and One Inc., where he specialised in driving client success and operational efficiency through innovative payment solutions. At Flywire, Manny leverages his deep industry expertise to help insurers streamline complex payment processes to enhance the customer experience and drive operational efficiencies.
October 2025
Issue
This month we examine whether insurers are making the best use of social media to target a new audience. We look at what’s been done, and what more could be done to educate a new generation. We also look at the rise in multi-generational holidays – are insurers able to tailor policies to fit this trend?
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