This paper explores how payment friction silently undermines revenue and retention for property and casualty insurers. Payment friction, defined as obstacles that delay or complicate premium payments, often leads to declined, missed, or late payments that cause unintentional policy lapses. Unlike active cancellations, this “silent churn” occurs without clear intent from policyholders, making it harder to detect and address. The paper outlines how insurers can recover lost revenue and improve retention by adopting modern, proactive payment strategies that reduce friction, support seamless payment experiences, and protect long-term customer relationships while strengthening overall financial performance.

Join for free to read