UK banking group Alliance & Leicester Commercial Bank, in partnership with Money Card, has developed a Visa prepaid card designed specifically to meet the needs of the insurance industry.

Prepaid cards offer insurance companies significant advantages when making direct payments to claimants, including cost savings, greater financial control, fraud reduction and improved customer service.

Furthermore, compared to check payments, vouchers or cash, prepaid cards will reduce management and reconciliation times, and use automated processing, which cuts out back office administration and helps monitor claimant spending.

A wide range of prepaid card offerings has been developed by Alliance & Leicester Commercial Bank to meet the needs of insurance companies. Its cards are available as single use or re-loadable in pounds sterling, euros or US dollars. Insurance companies can even restrict where the funds can be spent. For increased security, cards are also available with chip and PIN functionality.

Advantages are not only restricted to the insurance companies as claimants using a prepaid card will also benefit. The prepaid card will offer greater convenience for the end customer and is more secure than other payment methods.

Graham Utton, director of sales and marketing at Money Card, said: The insurance card gives organizations greater opportunities to reduce cost whilst increasing customer choice and satisfaction. Money Card Limited’s new association with Alliance & Leicester Commercial Bank combines our state of the art technology with the bank’s expertise, to deliver this simple and cost effective solution.

Once funded by the insurance company, a prepaid card may be used for a predetermined timescale or until the allocated funds are exhausted.