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Insurance firms still rely on paper checks despite higher costs and fraud risk

A business paper check can cost $4 to $20+ to process, and large insurers or MGAs moving 20,000 checks per month can spend $80,000 to $400,000 monthly just on paper handling.

Reported · Written up by our desk · Industry & Deals

Coverager reports that, even in 2026, many insurance organizations continue to rely on paper checks for B2B payments, with insurance still “anchored” above 50% check usage compared with just 26% across other commercial sectors. The outlet argues that paper checks create compounding operational delay and risk at scale, especially for organizations processing 10,000 to 50,000 or more payments per month. Coverager cites research and benchmarks that place the fully loaded cost of processing a single business paper check at between $4 and $20+. Coverager says the burden can be particularly steep for high-volume carriers or managing general agents, estimating that processing 20,000 checks per month can drive $80,000 to $400,000 in monthly expenses tied to physical handling, mail opening, manual data entry, lockbox fees, bank runs, endorsement verifications, and postage.

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