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Insured Benefit Accounts

For insurers who desire to provide exceptional service to their claimants and beneficiaries without deploying internal staff to manage a full Customer Access Account (CAA)* program, Open Solutions offers Insured Benefit Accounts (IBAs).

Like CAAs, IBAs improve customer service and profitability. Unlike CAAs, however, IBAs are fully outsourced, requiring no internal resources to manage the program.

Another significant difference between IBA and CAA programs is that claim proceeds are not retained within the insurer organization. The insurer pays the settlement claim upon issue into a depository account at a leading financial institution. Therefore, instead of generating earnings to the organization's bottom line through investment spread—as with a traditional CAA program—the insurer earns income based upon average balances retained in its IBA accounts.

Upon settlement of a claim, Open Solutions establishes an FDIC-insured, interest-bearing checking account at the financial institution and sends a checkbook to the beneficiary, while the insurer sends a letter advising the beneficiary that the account has been funded. Open Solutions provides full call center support for the insurer's IBA accountholders.

Beneficiaries can access the funds at their discretion, allowing them to defer stressful financial decisions and giving them time to consider their investment options. Knowing they have a safe investment vehicle earning a competitive rate of return, some customers keep balances in their accounts for long periods of time, and even add to those balances over time.

IBAs allow insurers to earn incremental revenues as well as strengthen customer relationships by providing their customers with exceptional service when they need it most.

*Customer Access Account (CAA) was previously named Retained Asset Account (RAA)