5 FNOL (First Notice of Loss) process improvements that drive customer retention and boost revenues
In the eyes of the customer, claims experience is what insurance is all about. And it all starts with the FNOL (first notice of loss) process. But, unfortunately, more often than not, insurers are getting it wrong. Not only do manual FNOL processes end up costing insurers millions in manual handling and data entry tasks, but the poor experience during the sensitive claim process also costs them their customers.
And often, the problems start with a clunky and manual FNOL process.
What impact does the FNOL process have on customer experience?
First meaningful interaction with policyholders
For insurance providers, the FNOL process is crucial to establish long-lasting relationships with policyholders. When a customer’s asset is lost, stolen, or damaged, it is a sensitive time for the customers. So insurers must move swiftly, without unnecessary delays or convoluted bureaucracy.
FNOL form is the first step a customer takes when initiating a formal claims process lifecycle, how the FNOL process is handled makes or breaks the customer experience in insurance.
Significant impact on customer retention
The FNOL process gives the insurance provider a chance to put its money where its mouth is (literally.) For customers, this is the first meaningful interaction with their provider. Anything less than a superior experience at this sensitive time is likely to leave a strong negative impression and result in customer churn.
- A survey of 8,000 auto and home insurance customers across 14 countries found that 41% of policyholders who had submitted a claim were likely to switch insurers within the next 12 months.
- 83% of the respondents who reported dissatisfaction with the way their claim was handled said they had switched or planned to switch to another insurer. (Accenture)
By delivering superior claims service, insurance providers can hopefully leave a strong positive impression on their customers, resulting in improved post-claim retention. When the claim service exceeds the customer’s expectations, customers are more likely to stay put, boosting customer loyalty and NPS scores.
What impact does the FNOL process have on operational costs?
On average, P&C insurers spend up to 80% of total premiums on claims handling and indemnity.
A big chunk of claims process expenses is caused by inefficient data collection processes often handled with manual and paper forms. This results in incomplete or missing data, slow speed of claim handling, and lack of transparency.
Manual Data-Entry Results in High Friction
When manual, clunky data collection methods support the FNOL process, the operational costs increase significantly,
Errors are introduced both by the customer and by the data-entry team. On average, over 60% of manually filled FNOL forms will have mistakes, unreadable handwriting, or unreadable scans. By getting incomplete or mistaken data, adjusters must repeatedly communicate with the claims intake department to clarify inbound data and gather additional information. Customer representatives must then contact the insured, creating friction and causing delays.
5 steps to ensure a great user experience throughout your claims process
Step 1: Digitize claims process from A to Z
In 2020, digital was king. Insurers can no longer justify the use of paper-based and manual data and signature collection methods. FNOL process that is entirely digital creates synergies between customer service, claims intake, and adjuster departments. By converging all the relevant internal processes into a single customer-facing digital process, insurers can achieve levels of efficiency that create a frictionless and smooth experience for the customers.
Step 2: Enhance customer satisfaction & customer experience
Customer experience must be put on the front end of every process in insurance. After all, acquiring and retaining policyholders is at the core of the insurance business. FNOL process must provide a top-notch overall experience:
- Multi-channel: a customer should have freedom of choice regarding how they decide to initiate and manage the process: self-service portal, call center, email, chatbot, or in-person meeting. All the channels must converge on a single customer-facing process.
- Responsive: Insurers shouldn’t limit the customer to which device they can initiate and complete their process.
- Personalized: You already have a treasure trove of information on your customers. Your customers expect you to use this data to improve their overall experience. Pre-fill fields with the data you already have – for example, you have no reason to ask the car’s exact maker if you already have this information in your systems.
- Frictionless: The overall process should be as frictionless as possible for the customer.
Step 3: Eliminate manual data entry and reduce errors
As discussed above, manual paperwork is what causes the most negative customer experiences with FNOL processes. By eliminating manual processes and replacing them with user-friendly digital customer journeys, insurers can improve the overall customer experience and significantly reduce the errors that inevitably occur in manual processes.
Step 4: Shorten cycle times and speed up processes
Digital processes have a significant advantage – data can instantly be funneled into all relevant systems. By ensuring that data is immediately accessible to all relevant employees, processing speed can be significantly reduced.
Step 5: Maintain data integrity with real-time data validation
Data integrity is what ensures a frictionless process. By putting the data validation at the entry point, insurers can eliminate the headache of inaccurate, wrong, or missing data that significantly prolong FNOL processes.
A streamlined FNOL process, technology, and analytics are the keys to success in today’s highly competitive environment. Ready to upgrade your FNOL processes with EasySend’s no-code platform? Contact us today to schedule a demo.