Bring Your Own Bank: Redefining How Insurers Fund Claims Payments

When Dream Payments launched the Dream Insurance Payment Network, we helped carriers take a major leap forward — enabling them to pay claimants and service providers digitally, securely, and seamlessly across North America.

For the first time, insurers could move away from paper checks and outdated manual processes to deliver instant, digital claim payments to policyholders, auto repair shops, healthcare providers, and beyond.

But even with this innovation, one key challenge remained: prefunding.

The Hidden Cost of Prefunding

To use their accounts, carriers needed to prefund them — meaning they had to move capital into a separate account before issuing claim payments.

For smaller insurers, this was manageable. But for large, national, and multinational carriers managing complex liquidity pools, prefunding meant locking up millions of dollars in idle capital and forgoing interest income on those funds.

Worse still, it created friction with existing treasury workflows. Money had to be moved, tracked, reconciled, and managed outside of the carrier’s established banking environment.

In short: the digital efficiency of the front-end payment process was being slowed by a traditional funding model at the back end.

Introducing BYOB: Bring Your Own Bank

To solve this, Dream Payments launched the BYOB (Bring Your Own Bank) funding model — a first-of-its-kind innovation that allows carriers and TPAs to link their existing bank accounts directly to the DreamPay Insurance Payment Hub.

With BYOB, claims are funded in real time, straight from a carrier’s existing treasury account. There’s no need for new bank accounts, no prefunding, and no change to the way insurers already manage their liquidity.

It’s simple. It’s seamless. And it transforms how carriers move money.

The Benefits of BYOB

1.     Preserve Liquidity and Maximize Capital Efficiency

With BYOB, funds stay in your organization’s existing bank accounts until the moment a payment is needed. This eliminates the need to hold idle balances in prefunded accounts and ensures your capital continues to work for you.

2.     No New Banking Relationships or Accounts

Enterprise treasury relationships are often years in the making. BYOB integrates directly into those existing banking relationships. You keep your existing banking partners and workflows while gaining all the benefits of Dream Pay’s payment automation.

3.     Faster, Frictionless Claims Funding

With direct bank connectivity, claims can be funded instantly as they’re approved. That means faster payments to claimants, auto shops, healthcare providers, and anyone else in the claims value chain — improving satisfaction and trust while reducing operational overhead.

4.     Stronger Control and Transparency

Because payments are executed directly from existing enterprise bank accounts, treasury and finance teams maintain end-to-end visibility and control. This structure changes how treasury and finance teams view and reconcile transactions and ensures compliance without additional manual processes.

5.     Seamless Integration into Enterprise Systems

BYOB is built to integrate with insurers’ core systems, claim management platforms, and ERP tools. Payments flow automatically — minimizing manual intervention, reducing the potential for errors, and accelerating straight-through processing.

The BYOB model is more than a funding innovation — it’s a strategic advantage for insurers navigating an increasingly digital, regulated, and fast-moving landscape. By combining real-time funding, enterprise-grade security, and flexible bank connectivity, DreamPay is helping carriers modernize their operations without sacrificing liquidity, compliance, or control.

For insurance leaders, the message is simple: You no longer have to choose between digital transformation and capital efficiency. With DreamPay BYOB, you can have both.

Talk to us today to learn how you can integrate BYOB into your claims process and unlock new levels of liquidity, automation, and customer satisfaction.