One key treasury initiative that helped save Allstate Insurance Co. $15 million so far was converting three of the paper-based payments options to electronic payments: checks that arrive by mail in Allstate's in-house lockboxes, and check-by-phone and check-by-Web payment channels. Together they comprise over 35% of Allstate's incoming payments.
While Allstate's lockboxes are completely ARC-enabled, only about 78% of the payments are eligible for ARCing. Checks over $25,000 and checks that are not accompanied by payment coupons cannot be converted, explains Zelma Echols, treasury manager. Still, Allstate has been able to increase its use of the ACH beyond the ARC conversions by promoting direct debit authorizations and online electronic billing and payment Web sites.