How to Turn FNOL into a Customer Satisfaction Opportunity

Posted on

September 24th, 2018

Customer loyalty is harder to achieve than in years past thanks to aggressive competitor pricing and the ease of purchasing insurance online. It’s not new information that first notice of loss (FNOL) represents the single greatest moment to improve customer satisfaction during the claims process. However, creating a positive FNOL experience can turn a customer into a brand ambassador via word of mouth.

What Customers Want from Their Insurer

When a customer makes a claim, they are likely in a state of distress. They’re reporting a loss of some type, and are relying on their insurer to navigate the complexities of the claims process for them in a quick and efficient manner. If an insurance company suffers from a poor claims cycle, they are more likely to lose customers to competitors with more streamlined claims practices. From FNOL to claims resolutions, customers want the following from their insurance provider:

Empathy
Efficiency
A clear plan of what to expect during the claims process
Reassurance

Above all, though, claimants want to know their insurance company will respond as fast as possible. Customers can initiate FNOL over the phone, via an app, an online website, and more. The moment they begin the FNOL process, the clock is ticking for the insurance company to assure the customer that they will take care of their needs.

Effective Communicate is Vital to Customer Satisfaction

What this really boils down to is superior communication. Now more than ever, customers want to know what is going on with their claim every step of the way. They want updates on each stage of the claims process as well as next steps. Customer-centric insurance providers know this and offer customers several ways to receive updates. Some customers prefer texts while others want a direct phone call.

An insurance company that takes the time to reassure their customers at the outset of a claim as well as maintains effective communications through the claim cycle is more likely to retain customers. While competitive pricing may lure customers briefly, superior services will win out in the end. Although insurers need to make certain their entire claims process is effective, FNOL sets the tone for the entire duration of a claim. If your FNOL processes are lacking, you run the risk of losing customers. Contact the experts at Actec to learn how we can help your company implement groundbreaking FNOL solutions.

How Insurers Can Repair Damaged Customer Relationships

Posted on

September 10th, 2018

Andrew

smart devices Much like any other service-driven industry, insurance companies rely on customer satisfaction to stay in business. If customer satisfaction is low, insurers are at a significant risk to lose their customers to competing companies. Customer loyalty is no longer what it used to be, either. Forty percent of policyholders are unhappy with their current provider and they are considering switching to a new insurer within the year.
This is a significant risk for a few reasons. Insurance companies could see $400 billion in insurance premiums switch hands over the span of one year. That is a significant amount of destabilization in the industry. While some insurers may benefit from the change, many cannot withstand such a significant change in finances. One-fourth of customers are also willing to cancel an existing contract regardless of fees or penalties. Compounding this problem, customers are willing to shop online to purchase insurance rather than using their existing provider.

Stemming the Loss of Customers

Customer satisfaction is the key to loyalty. If customers aren’t happy, they have no incentive to stay with their existing insurance company. The following are several ways insurance companies can increase customer satisfaction:

Offer personalized services. Customers dislike when they call their insurer to discuss policy options and a representative directs them to a website for assistance. Customers want personalized services so they can feel secure in their insurance policy decisions. While insurers may balk at this notion citing additional time and cost, 41% of customers are willing to pay extra for this level of care and service.
Offer affordable solutions. Continuing with the above, just because customers are willing to pay more for personalized services doesn’t mean they are willing to overlook their policy’s price tag completely. Not all customers can afford Cadillac policies with all the bells and whistles. Many need realistic coverage that makes them feel safe in the event of a claim without gouging their checkbook.
Up to date technology. Customers expect to be able to access information about their claim from any device, at any location, anytime they want. This means insurance solutions need to be mobile friendly including an app for ease of access.

If your insurance business is struggling with customer satisfaction or noticing problems with customer retention, Actec can help. Contact us to learn how our innovative FNOL solutions can help your company today.

Four Ways to Improve Your First Notice of Loss Process

Posted on

August 27th, 2018

Andrew

shutterstock_306793247 - Copy First notice of loss (FNOL) represents the single greatest opportunity to improve a customer’s satisfaction with their insurer. However, when a customer initiates a claim, they are likely in an emotional state. Filing a claim after an accident, loss, or theft is stressful and customers have high expectations with diminished patience.
A customer’s experience matters for retention and recruitment purposes. If the customer has a negative experience, he or she may find a new insurer as well as tell his or her friends and family to avoid that insurance provider. In fact, customers are 60% more likely to talk about their bad experiences than their positive ones. Because of this, it behooves insurers to fine-tune their FNOL process to ensure their customers have the best claim outcome possible.

How Strong is Your FNOL Process?

The following questions can help insurers assess the strength of their FNOL process:

Can customers start a claim through their smartphone? Technology has caused customer expectations to skyrocket, meaning they want to initiate a claim when they want, how they want, where they want. Customers want the ability to switch their methods of communication from phone conversations to digital interactions. This gives them the freedom to manage their claims from the palm of their hand.
Do customers have several options for how to start a claim? Continuing with the above, customers like a variety of ways to contact their insurer about a new claim. Some prefer to speak to an insurance representative directly while others want to begin the process via digital methods. Forcing customers to initiate a claim in one specific way will frustrate them during an already stressful time.
Can customers receive real-time updates on their claim? Customers don’t like to be left in the dark when it comes to their claim status. They want easy access to updates regarding their claim. This can allow them to stay up to date on verified documents as well as missing information notifications.
Do employees have access to customer data? Allowing a customer to initiate claims from their smartphone is useless if employees don’t have access to that information. This requires customers to provide information multiple times, which frustrates them. If adjusters from various processes can’t connect to FNOL systems, they won’t have the data they need to progress the claim in a timely manner.

A poor FNOL process can cripple retention and recruitment efforts. Addressing the above points can help ensure a positive customer experience and continued customer loyalty. Contact the experts at Actec to learn how we can help you improve your FNOL process.

Rapid Claims Resolution Tips to Improve Customer Satisfaction

Posted on

August 13th, 2018

Andrew

shutterstock_306793247 - Copy Customers and insurers both want rapid resolution for claims. However, insurers have to balance risk and fraud with customer satisfaction, which can result in some delays. The longer a claim sits unresolved, the angrier the customer will become. To help resolve claims without increasing risk, insurers need to put a well-organized claims process in place. Some ways to achieve this include:

Keep claims loads manageable. When claims adjusters take on too many claims at once, they are likely to drop the ball on at least one (if not more) of them. Forming claims into sets or groups based on necessary resources can help expedite the process while keeping the workload practical.
Identify the bottleneck. There are a number of reasons why claims don’t reach settlement. These include disagreements over what insurance will compensate, requests for medical treatment, and overlooked simple requests. These issues can halt a claim so identifying and addressing them can help get it back on track.
Triage claims. The number of unsettled claims can spiral out of control if adjusters don’t manage resolutions appropriately. Adjusters should first focus on claims that are ready for settlement. After that, the next most appropriate claims to settle are the oldest in order to regain those customers’ satisfaction. New claims with complex intricacies should also garner rapid attention as well so that the details don’t get lost over time. Adjusters should avoid working on claims where the claimant is uninterested in settling in favor of the above types of claims. They can always return to those claims after resolving ones that are more straightforward.
Pinpoint ways to improve going forward. Some claims remain unresolved for long periods due to inefficiencies in the claims process. When working claims, try to identify the reasons for this and implement new practices to prevent them in the future. For example, if numerous delays are the result of unanswered medical requests, consider adding a step to check for these requests at regular intervals to make sure no one misses them.

Improving claims processing from first notice of loss to settlement helps improve customer satisfaction and close more claims. If your claims handling processes are causing customer retention issues, Actec can help. Contact us to learn more about our Full-Cycle Claim and Incident Reporting Solutions.

Avoid These 5 Mistakes for Better Claims Results

Posted on

July 12th, 2018

Andrew

shutterstock_306793247 - Copy Medical coding is a complex process that varies for every procedure, patient, and insurance provider. While no billing department is immune to claim denials, they can avoid several common mistakes to reduce the frequency of them. These include:

Missing information. Claims need to be as specific as possible to avoid a denial. Any missing piece of data can result in a rejection. However, the most common missing details are the date of the medical crisis, the date of onset, or the date of the accident. Avoid this mistake by examining the claim for any missing fields.
Incorrect patient information. Similar to missing data, incorrect patient data can result in a claim denial. The most common examples of incorrect information include misspelled names, inaccurate date of birth, sex, insurance provider, and policy number. Double-checking the patient’s information for accuracy can avoid this kind of claim denial.
Referral required. Some insurance providers require patients to receive a referral or prior authorization before receiving certain medical services. If a primary care doctor sends a patient to another physician for advanced medical tests or specialized treatment, he or she may have to issue a referral while the payer issues a prior authorization. However, receiving prior authorization doesn’t guarantee coverage. If the payer determines the services weren’t medically necessary or if the claim wasn’t filed on time, the payer may still reject it.
Claim filed too late. Continuing with the above, providers must submit claims within a certain window. For Medicare patients, this is of particular importance. The Affordable Care Act reduced the claims submittal period from 15-27 months down to one calendar year. This means from the date of service (the from date on the claim), providers have one year to ensure the payer receives the claim. This means if the provider submits the claim before the end of the calendar year, but the payer receives it after the one year date, the payer can deny it.
Eligibility issues. Insurance terms and coverage change often, so it’s vital to verify eligibility before receiving a service. For example, a patient may be eligible to receive physical therapy following an accident, but only for 12 weeks. If the patient meets their maximum benefit, the payer can deny any claims extending beyond that amount.

Keeping errors to a minimum is critical for successful claims management. If your claims management system is causing several errors and delays, contact the experts at Actec. Our full cycle claim and incident reporting solutions can help you close claims quickly and efficiently.

How to Improve Claims Customer Service

Posted on

June 19th, 2018

Andrew

shutterstock_138016598 - Copy Insurance claim adjusters have a difficult job. They take the brunt of angry client phone calls while managing a workload of dozens if not hundreds of claims at any given time. However, while customer service is part of the job, there are several ways to improve the experience to cut down on the number of complaints. Improving the customer experience isn’t just about resolving complaints either. Twenty percent of customers never complain at all; they let their wallet do the talking and find insurance elsewhere. The following suggestions can help improve the customer’s experience and loyalty.

Follow up often until settlement. Unlike sales calls, customers always want to hear from their claim adjuster. Adjusters should call more often at the onset of a claim when the customer is most upset and in need of guidance. By maintaining frequent contact, the customer isn’t left wondering about the status of their claim or what steps they should take next.
Provide emotional support. One of the most common customer complaints is that their insurance provider doesn’t care about them. While there isn’t enough time in the day for a claim adjuster to provide the amount of emotional support every single customer needs after an accident, showing even a little compassion goes a long way.
Handle complaints with grace. Most of the time, a customer just wants someone to listen to them and apologize for the poor experience. While no adjuster like to listen to criticism, validating a customer’s frustration helps retention rates.
Promote rapid action. Most customer complaints center on delays and lengthy claims processes. However, customers are the root cause for most of these delays. Pointing this out to the customer isn’t likely to yield a positive outcome; instead, the adjuster should encourage the customer to supply necessary documents as soon as possible.

Even when certain tasks are out of the adjusters’ hands, they can influence the outcome of a claim. If your company is struggling with customer retention rates, Actec can help. Contact us to learn more about improving your claims management processes.

How to Improve Claims Management Workflow in 3 Simple Steps

Posted on

June 5th, 2018

Andrew

shutterstock_251707783 sm There are only so many hours in a day, but clients don’t care about their insurer’s workflow problems. They want answers to their questions, rapid resolutions for their claims, and quick payouts for settlements. While insurance companies can’t make the day any longer, they can optimize their existing procedures to improve efficiency. The following are several ways to improve the claims management workflow.

Consolidate and Share Data

Insurers that rely solely on spreadsheets limit their service abilities. When insurance agents and adjusters need to access information about a claim, a massive excel spreadsheet is not the most efficient method. Storing data on several databases also makes it difficult to find all of the relevant information, which slows down the claims resolution process. By storing all data in one location and granting access to all relevant employees, insurers can speed up the claims management cycle.

Prepare for Emergencies

Many businesses operate well enough until they are hit with an emergency. They don’t have the ability to take on the additional work, so their day-to-day tasks sit on the sidelines until they can resolve the problem. This creates a looming disaster, as the sheer volume of backlogged work will swiftly overwhelm employees. If insurance companies consolidate their data as suggested above, adjusters and agents can access the information they need much faster, which better enables them to handle emergency situations.

Look for Trends

When data is easier to access and view, insurers can identify trends much faster. For example, an insurance company may notice certain natural disasters provoke more fraudulent claims than others do. They can then look at those false claims and search for commonalities to red flag similar claims going forward. This can save hours of time otherwise spent working on a case that may or may not be duplicitous.
Resolving bottlenecks in the claims management process doesn’t always have to be complicated. Sometimes, it’s as simple as revamping an existing system to make it work better. If your claims management process is causing headaches, contact the experts at Actec to learn how we can help.

How to Ensure Customer Satisfaction During Insurance Claims

Posted on

May 21st, 2018

Andrew

shutterstock_138016598 - Copy Insurance companies run any number of ads to try to lure new customers; however, retaining customers is just as critical for success. The best way to keep customers loyal is during the claims process. When a customer files a claim, they are often in a vulnerable state. They likely experienced a loss of some kind (i.e. car accident, theft, etc.) and need their insurance company to help them through the process. If their experience is less than satisfactory, customers may begin looking for a new insurer.

First Notice of Loss

First notice of loss (FNOL) is one of the greatest opportunities for insurers to guarantee customer satisfaction. This period of time is when the client is most upset as they are filing a claim right after an accident or loss. Insurers can improve their customers’ satisfaction during this phase by minimizing the amount of effort the client has to put forth. However, while FNOL plays a pivotal role in customer satisfaction, it presents less of an opportunity to improve the overall claim experience.

Acting in the Client’s Best Interest

While many insurers know that FNOL is vital to customer satisfaction, not as many realize that customers place a higher premium on their insurance company acting in their best interest. This part of the claims process can improve customer satisfaction and the overall claims experience. Factors affecting this include:

Managing the client’s expectations
Minimizing or eliminating surprises by supplying the client with solid information
Resolving the client’s issues the first time

Dialing in the Claim

Insurance adjuster can use a few additional approaches to improve the claims process. While they do not do much to improve the customer’s overall satisfaction, they do affect customer retention. These include:

Knowing the client’s personal information
Providing a personalized experience
Finding the client’s preferred contractor for repairs

Insurance companies that focus on the above can improve their customers’ satisfaction as well as their overall claims process. These two factors are vital to improving customer retention. If you’re losing customers to the competition, it may be time to overhaul your claims process. Contact the experts at Actec to learn how we can help.

3 Critical Steps to Improve the Claims Process

Posted on

May 4th, 2018

Andrew

cycle-2019530_1280 Improving the claims management process does more than improve customer satisfaction. It also improves employee efficiency, which allows insurance agents to close more claims on a faster timeline. Whether adjusters have years of experience and are learning new technology or they are new professionals that are used to automated software systems, any insurance agent can benefit from the steps outlined below.

Improving Workflow Processes

Many insurance companies toss around the term best practices, but what they usually mean is common practices. While there are rarely 100% right or wrong answers, agents should incorporate the following into their workflow:

Work outside the claims box. Falling for the idea that all simple fender benders, bicycle incidents, etc. are the same can result in expensive errors. Assuming one accident will play out as a previous similar accident is foolhardy. Agents should approach each claim with a renewed outlook to make sure they do not miss any important details.
Assess and address leaks in the workflow. The saying if it ain’t broke, don’t fix it does not apply in the insurance industry. While a claims process may be working on some level, major inefficiencies (or several minor ones) can add to the amount of time it takes to close the claim. Longer claims processes make for unhappy customers and cost more money in the long run. For example, most claims have an abundance of documents. By assessing how agents collect and file these documents, insurance companies can discover inefficiencies. Once they see the problem, insurers can implement a new process to streamline documentation.
Don’t underestimate processing details. No one stage of the claims management process is more important than another. To put it another way, agents shouldn’t take shortcuts during perceived less important stages of the claim. From pre-claim to post-claim processing, agents need to give the claim their due diligence. This means adjusters need to collaborate and communicate with other relevant agents as well as the customer for a timely resolution with a positive outcome.

Even the best claims management process needs frequent review to ensure it is as efficient as possible. If your claims management process is lacking, Actec can help. Our Full-Cycle Claim and Incident Reporting Solutions can address inefficiencies and improve claims procedures from start to finish. Contact us to learn more.

State of the Industry: FNOL and Customer Satisfaction Metrics

Posted on

March 19th, 2018

Andrew

shutterstock_487910935s, Homeowners submitted record high claims this year after several severe weather incidents wreaked havoc across the nation. However, their overall satisfaction with the claims process was at a record high. Insurers are able to do so with improved communication. While many believe faster claims resolution improves customer satisfaction (it does), stellar communication can make it even better. This is because insurance representatives can manage the customer’s expectations for a timeline to resolution.

The Facts About Customer Satisfaction

A 2018 study by J.D. Power revealed several illuminating facts about the current state of the insurance industry.

Customer satisfaction is at a record high. There are certainly areas that need improvement (Texas and Florida are below the new average), but, in general, customers are happier than ever with their insurance providers. On a 1000-point scale, property claims reached a new height of 860 points. For the second year running, satisfaction with property claims is matching auto claims.
Communication and responsiveness are vital to improved satisfaction. Customers want rapid claims resolution, but this is not always realistic. When insurers manage their customer’s expectations on how long it will take to close the claim, the customer has a better overall experience.
Adverse weather is taking its toll. Customers are happier with their property claims—except in hard-hit areas. Texas and Florida experienced significant weather issues in the past year, and customers were not happy with how their insurers managed their claims. In particular, time to resolution doubled for weather-related events compared to non-weather-related events.

When scoring insurers, the study looked at five categories (listed in order of importance): settlement, claim servicing, first notice of loss (FNOL), estimation process, and repair process. Insurers that are struggling with low customer satisfaction should focus on improving these areas. While the study ranked settlement as the number one priority, FNOL represents the earliest opportunity insurers have to set the tone of the claim cycle. Actec can help insurers enhance their FNOL process and improve their claims management system. To learn more, contact us today.