FNOL: Is Your Claims Process Hurting Customer Retention?

Posted on

September 6th, 2016


shutterstock_174875483When a customer first contacts their insurer, this is the best chance to have a lasting and positive influence on their experience. However, if the notice of loss process is not efficient or requires a lot of leg work on the customer’s part, they will likely have a long-term negative association with their insurer. Once the customer initiates the process, other factors begin to affect their overall perception as well. Communication with employees, ease of understanding the claims process, and how fast the insurer handles their claim all contribute to the customer’s final opinion.
Ineffective claims processes are often the root of customer dissatisfaction. Traditional claims processes segment the claims manually which can lead to delays. Another element that slows down the claims process is high employee turnover rates. This reduces work quality and further interrupts the process.
A major way to improve customer satisfaction is to meet their technological expectations. Many customers want a digitized claims process that is clear and progresses without their continued input. While dated systems can hinder this, there are ways to improve the customer’s experience.
To improve the FNOL process, insurers can:

  • Automate the initial claims process by going digital. Automating segmentation can reduce the amount of effort required for both the customer and the insurer.
  • Engage in proper staff management and forecasting. If an insurer knows what time of year is busiest, they can fill labor gaps without overtaxing their permanent workforce. This will reduce turnover and training time as well as increase work quality.

By focusing on meeting the customers’ needs and expectations during their time of crisis, insurers can improve customer satisfaction and retention. To learn more about claim management, contact us.