MIGPay℠, a new “pay-as-you-go” billing and payment program from Merchants Insurance Group, is making it easier for agents and policyholders to process workers’ compensation payments.
MIGPay℠ was unveiled December 3, 2018, and is available for policyholders in Massachusetts, Michigan, New Hampshire, New Jersey, Pennsylvania, New York and Vermont.
“We operate in an environment which requires us to offer competitive products and flexible billing options to our customers,” said Charlie Makey, Senior Vice President – Insurance Operations, for Merchants. “MIGPay℠ gives our independent agents another product and payment option to respond and compete.”
The plan, administered in conjunction with Merchants’ partner, Split Limit Studios LLC, allows workers’ compensation premiums to be automatically withdrawn from the policyholders’ designated financial institution every time the policyholder processes their payrolls, making it easier to manage cash flow. Flexibility is one of the hallmarks of this payment plan, as withdrawals are based on the individual policyholders’ payroll cycle (bi-weekly, semi-monthly, monthly, weekly).
The plan is available for new or renewal Workers’ Compensation policies with a minimum premium of $2,500. All transactions are conducted online and via email, and premium payments are electronically processed using an automated clearinghouse process (ACH). Payrolls can be either self-reported by the policyholder or reported by their payroll company.
MIGPay℠ provides a number of benefits for both agents and policyholders. For agents, the flexibility allows them to sell and retain more business by providing additional new business and cross-selling opportunities, provides higher renewal retention, and helps agents to compete with payroll providers.
For policyholders, MIGPay℠ is easy to use. The plan benefits them by allowing for more predictable cash flow as it is based on reported, not estimated, payrolls. In addition, premium is automatically withdrawn, simplifying the process, and it eliminates audit surprises at the end of the policy term.
Additionally, Merchants doesn’t charge a set up or monthly processing fee to use the payment plan, and enrollment involves only a few simple online steps.
In order to support agents and policyholders, Merchants provides a dedicated Merchants MIGPay℠ administrative services team for support via phone and email.