Late Payment Prediction for Insurance Business
Why AI-based Late Payment Prediction
Cash, the lifeblood of all business. Poor management of AR can lead to financial instability related to inaccurate cash estimations and also to potential overload of the resources dealing with overdue receivables due to wrong account contacts allocation. Extending days sales outstanding (DSO)—or in other words, the average number of days that receivables remain outstanding before they are collected — is a common problem across all financial industries.
iERP’s Late payment AI is enabling collectors on various seniority level at insurance company to identify invoices and payments that are very likely to be paid late so that Debt collectors have greater visibility of future overdue receivables and they can focus on the customers with the largest probability of late payment. List of prioritized customers to be contacted based on probability of late payment is increasing collectors effectivity, can lower DSO and provide much greater future cash flow visibility.
iERP Artificial Intelligence module can provide answers to questions:
- How the insurance collector should decide who he/she will call first?
- Which client is more likely to pay late?
- How collectors keep track of clients behavior?
Benefits of AI-based Late Payment Prediction
- Managers and Collectors can prioritize contacting clients based on the probability of late payment helps collectors make more effective and efficient decisions. This is allowing the insurance company to estimate better how much money will be delayed in cash and work pro-actively to avoid late payments.
- Decrease days sales outstanding (DSO) by identifying invoices with late payment probability at the moment of creation so users can assign specific payment terms to such an invoice in order to prevent late payment.
- Identify and sort existing invoices and customers with the highest probability of being paid late and take an appropriate action.
iERP’s mission is to provide an end-to-end business prediction platform with modules that address multiple business scenarios and ZERO required knowledge of artificial intelligence or machine learning technologies.
We are helping companies to predict sales and inventory demands, what their customers are going to purchase next, or identify customers that are going to be late with the payment.