Ten reasons why insurers should make the switch to digital FNOL
Customers expect more than just quick and easy claims processing: they want an experience that's convenient, transparent and digital-first. And insurers need to deliver on this expectation: according to McKinsey, 70% of consumers will switch insurers within 5 years if their current insurer isn't delivering on their expectations. According to recent data from J.D. Power, 77% of auto insurance customers say they are either actively shopping for a new carrier or have experienced an adverse event that triggered shopping activity.
Digital First Notices of Loss (FNOL) is the first step in this journey to digital claims experience, and as such is a crucial part of the claims process. With the need to provide a digital customer experience, and the impact of shopping behavior on insurer satisfaction, it's important that insurers implement solutions to streamline claims processing while pushing customer interaction beyond the claim itself. This will give your customers ease and transparency through their entire lifecycle, ultimately increasing loyalty and retention.
Here are 10 reasons why digital FNOL is are the future of claims interactions:
1. Digital FNOL means better customer experience
Customers are changing their behavior to anticipate the digitization of certain processes, including claims. In a recent survey, insurers reported that 73% of their customers expect to complete claims digitally and 41% would penalise insurers who don't offer an online channel for claims submission. In addition, 83% of respondents said they were more likely to renew their policy with an insurer offering a digital claims option.
Digital FNOL can also lead to a better overall customer experience because claims can be processed faster and the claims process is more convenient for customers. This means that claim-related questions can be resolved much more quickly, which reduces frustration among policyholders.
With digital FNOL, insurers can offer customers a much more personalized experience. By making information accessible online, customers will know exactly what is going on with their claim at any given time, which reduces frustration and increases satisfaction.
Digital FNOL can significantly improve the customer experience because it makes information easily accessible to customers. This reduces frustration, increases transparency and gives customers greater control over their claim.
2. Improved accuracy and efficiency
Digital FNOL can improve the accuracy and efficiency of the entire claims process. Claims can be processed more quickly, which means customers are less likely to experience delays. In addition, automated systems are much better at detecting errors and fraud. With automation, fewer mistakes will be made and fewer resources will be wasted on investigating false claims.
3. Faster processing time
One of the main benefits of digital FNOL is that it can dramatically reduce processing time. In many cases, claims can be processed in minutes rather than hours or days. This means customers will receive their payouts more quickly, and insurers can get back to business as usual more quickly after a claim has been filed.
4. Reduced claim turnaround time
Not only can digital FNOL speed up the processing of individual claims, it can also significantly reduce the average turnaround time for all claims. This is because the automation of key tasks such as data entry and document review means that fewer resources are needed to process each claim, and this freed-up capacity can be used to process more claims overall.
5. Self-service access
One of the biggest complaints about traditional claims processing is that it can be difficult to get information from insurers. This is because the process is often heavily reliant on phone calls and emails, which can take a long time to respond to.
Digital FNOL changes all this by making information easily accessible online. Customers can log in to their account at any time and see the progress of their claim, as well as any associated documents. This gives customers a sense of control and transparency, which leads to increased satisfaction.
6. Improved data management and data accuracy
Good data management is essential for a smooth and efficient claims process. However, this can be difficult to achieve with traditional methods such as phone calls and emails.
Digital FNOL allows insurers to manage their data more effectively. All information is validated at the point of entry and stored in one place, making it easy to access and analyse. This ensures that the information is error-free and the staff have access to the information they need, which reduces processing time and eliminates unnecessary steps.
8. Enhanced fraud detection
Digital FNOL can help insurers to detect fraud more effectively. Automated systems are much better at detecting errors and fraudulent claims than humans, meaning that fewer resources will be wasted on investigating false claims.
In addition, digital FNOL allows insurers to track patterns of behaviour over time, which can help to identify potential instances of fraud, as well as improve risk management and boost predictive capabilities based on data.
9. More efficient handling of large volumes of data
Digital FNOL is perfect for handling large volumes of data. The automation of key tasks such as data entry and document review means that insurers can process more claims in the same amount of time. This is essential when there is a high volume of claims, as it ensures that everyone receives the payouts they are entitled to in a timely manner.
10. Better decision-making ability
The ability to make decisions quickly is essential for insurers who want to stay ahead of the competition.
Digital FNOL allows insurers to process data more efficiently, which leads to better decision-making ability. Insurers can analyse large volumes of data in a short amount of time, and this information can be used to make better decisions.
11. Reduced administrative costs
Digital FNOL can help insurers to reduce their administrative costs. Automated systems are more efficient than humans, meaning that less time and money is wasted on processing claims. In addition, digital FNOL allows insurers to process a greater number of claims in the same amount of time, which reduces the average cost per claim overall.
Reimagining FNOL process as a digital journey
If your business is not transitioning to electronic FNOL, put it at the top of your priority list. A recent Willis Towers Watson report revealed that digitally enabled claims experiences can drive up to a 20% increase in retention and acquisition.
Digital journeys are complex, but if you are considering transforming your manual claims process into a digital journey , you need to know what your target is, and what you want your FNOL solution to end up looking like before you can get there.
Claims processes are complex, but they don't have to be complicated.
The right FNOL solution will make your claims process easier for your employees and customers alike, giving you a fresh opportunity to build trust in your company through faster service. A digital FNOL solution not only streamlines the claims process, it also enables you to provide a better digital customer experience .
An effective claims FNOL system will help companies achieve their goals without sacrificing accuracy or efficiency. If your company's current solution is holding you back from developing the best service possible for your customers, then it may be time to go digital.
And timing couldn't be better. This year, digital FNOL will become the norm: the US insurance market is transitioning to e-submissions of the First Notice of Loss, and more insurers are following suit.