The insurance industry has made great strides in keeping pace with the rapidly changing marketplace. The trends transforming the industry today include customer centricity and emotional relationships. Quickly evolving customer service expectations and the use of data and analytics to capture holistic customer views is informing the push toward customer centricity. Additionally, the centricity strategy entails making objective decisions. This allows the insurer to focus on the customer at First Notice Of Loss.
Claim processing remains critical to the survival of insurance companies. Therefore an effective claim handling capability can give the insurer an edge over industry peers. Customers prefer to report notice of loss on their schedule. Thus, carriers need a fast track claim handling mechanism aligned with the right claim resources. If implemented to its conclusion, the system will enhance service delivery and ensure customer satisfaction now and in the future.
The First Notice of Loss is usually made by policyholders reporting a lost, stolen or damaged asset. If the damage concerns a car crash, the insurer will connect the driver with an adjuster. The adjuster will assess the accident and determine the party at fault. Initially, the adjuster will also oversee the settlement of the claim in question. If the damage is major, the adjuster may hire a contractor or appraiser to help with the evaluation.
The outcome of the assessment greatly depends on the following information:
- The police reports
- Medical reports
- Testimonies obtained from the other drivers involved in the accident
- Information gathered from the witnesses at the scene
When an accident occurs, it is vital to have all the necessary documentation to expedite the claims process. To begin with, the insurer will request the insured party to submit important details such as policy number, personal account and the date and location of the incident. Generally, payment arrangements are usually made after the repairs or replacement of the lost, stolen or damaged items. The adjuster will give you full details of the settlement.
Because every claim is different, the process of addressing the claim will vary depending on the situation. Insurers can use the insurance carrier dashboard to initiate all the listed procedures, including the notification for the loss. Insurers often use time-tested and predictive modeling techniques to evaluate risk levels of claims. This speeds up the claims process and reduces mistakes. For example, an efficient system can detect fraud and prevent unwarranted payments.
It is important to recognize that the FNOL process is often the first direct contact a policyholder has with the insurance carrier. For this reason, the insurance carrier must make every effort to provide a positive customer experience. The way the insurer handles the claim will greatly impact customer experience and retention levels. For entities that have a First Notice Of Loss system in place, rigorous testing is necessary to evaluate the strength and efficiency of the system.
Below are the key test questions to ask:
1. Are customers able to initiate a claim process through mobile platforms and devices?
2. Can customers initiate claims using multiple channels?
3. Does the system support the data entry and processing using document photo?
4. When customers initiate a claim process, do you provide real time feedback?
5. Are the claims associates finding it easy to access the information and enter new claims?
Using digital platforms to implement effective claims strategy
Modern technology gives insurers advanced, automated and intuitive tools to process claims. An effective digital transformation process helps insurance carriers improve performance and customer experience. Firms looking to flourish in the competitive industry must craft strategies to increase customer engagement, drive profitability and deal with transformative digital disruptions. However, the successful implementation of digital processes isn’t always easy.
One of the difficulties carriers face is legacy systems, which have often made it difficult for firms to adopt new technologies. Another challenge comes from the fear of establishing centralized program management centers to deal with sanctioned digital initiatives. An effective solution for generating high customer satisfaction is allocating more compensated resources to complex claims.
Below are the traits of effective digital transformation in FNOL:
- Digitizing intake and claim reporting – this refers to an automated multichannel mechanism of intake and claims routing. The ability to support the intake of channels preferred by customers, brokers, service providers, and suppliers can help firms mobilize data for the First Notice Of Loss process. For instance, agents handling backend information can digitize the data obtained from various channels and begin the claim segmentation process much quicker.
- Automated segmentation featuring embedded analytics – a system that is segmented to address various aspects of the claim process can streamline the overall carrier intake and help address First notice of carrier challenges.
- Prospecting resourcing through workforce management resourcing – this solution is very effective in supporting volume surges while ensuring the customers are served around the clock.
- Claim workflow – a comprehensive claim workflow tool can be used to address key areas like investigations, settlement, processing cost analytics and detect potential fraud.
Digital intelligence and transformation are critical to maintaining a competitive edge in the market. Consequently, insurers need to work out strategies that will ensure a successful transformation. An important first step is to reconcile various digital interventions with human efforts. Companies can easily invest in multiple technologies to improve business outcomes. The last step in the process should be the implementation of effective data collection and processing strategies.
The agents can speed customer claims processing using identity systems that support digital signage and the uploading of photos. Furthermore, agents should be able to review the new information and share it with relevant parties. The other important component is the installation of a feedback system that makes it easy for customers to log in and check the real-time status of their information.
Firms with the right FNOL technology enablement will enjoy the following benefits:
- Reduced cycle time and related expenses
- Enhanced customer loyalty to the firm
- Positive loss and expenses ratios
- Claims resourcing strategies that are more in tune with complex, higher value activities
In summary, successful claim capability should address the basic needs of customers and insurers. Thus allowing more efficient claims handling; Resources are reallocated where needed and customer satisfaction will most certainly be guaranteed.
We are a leading FNOL call center committed to ensuring every claim that arrives at our desk is handled professionally and fairly. If you have any questions or concerns, get in touch with us via phone or visit our website today.