The FedNow® Service can offer insurance carriers the ability to instantly send final and irrevocable funds 24x7x365, creating an opportunity to modernize the policyholder experience, thus growing satisfaction and enhancing loyalty. This resource describes the advantages of transferring funds with instant payments, and outlines next steps for insurance carriers, service providers and financial institutions. Benefits of instant payment innovation in the P&C insurance space: Facilitating instant payouts for approved claims can get customers money and repairs quickly, bolster relationships, and improve business processes for insurance carriers across the space. Accelerate payouts with instant availability of much-needed funds • Instant payouts give insurance policyholders immediate access to funds they need for projects like urgent home or car repairs after an accident • Instant payments streamline transactions for the estimated 50% of approved claim payouts that go to businesses or vendors9, helping them get paid and get to work more quickly Improve relationships with customers in ways that increase satisfaction and boost retention • Policyholders can get paid using the payment method of their choice, which could appeal to customers who prefer digital payments • Better claim experiences drive customer satisfaction, in turn encouraging them to renew their policies or recommend their providers • Instant payouts can help insurers stand out in a crowded market with fast digitization and increasing competition Update analog systems and manual processes to cut costs • Instant payments can reduce reliance on inefficient and potentially risky checks, which still make up considerable shares of payouts • Instant payment methods can lower costs relative to other payment methods by cutting down on transaction fees, which in turn can offset rising industry-wide claims costs10 • New payment methods in the claims experience can accompany broader digital transformation initiatives across the industry • Routing insurance payouts to demand deposit accounts (DDAs) can help financial institutions grow balances and transaction volume.