First response time (FRT) measures how much time passes between a customer initiating first notice of loss (FNOL) and an agent responding to it. Customers want to be able to reach their insurance provider whenever they need them. Losses rarely give customers the courtesy of occurring during regular business hours, and how quickly an insurance agent responds significantly affects the customer’s claim satisfaction.
FNOL, FRT, and Customer Loyalty
FNOL and FRT go hand-in-hand to keep customers happy. FNOL represents 25% of a customer’s overall satisfaction with their insurance provider. In addition, industry research shows that the claims experience influences 87% of customers’ loyalty, while almost 80% will switch providers if their insurers’ responsiveness falls short of their expectations. A short FRT is essential following FNOL to retain existing customers.
Text and Chat for Better FNOL and FRT
The FNOL experience affirms customers’ expectations for better or worse. If they have a positive experience, they feel secure in their choice of insurance provider. If the experience is poor, it may reinforce the customer’s belief that they need a new insurer. Customer’s top complaints regarding the claims process include:
- Too slow (25%)
- Too difficult (22%)
- Too much paperwork (22%)
Text and chat services can address many of these pain points. Text messaging rapidly decreases FRT, as agents can respond within minutes of receiving a claim notification. Agents can also pull existing data from the customer’s file to partially complete the data-gathering process. Filling in known information can also reduce friction during the interaction. For example, the make and model of the customer’s car are already in the system. Customers are often already agitated when initiating FNOL and asking them for information they provided well before the loss will only increase their frustration.
Agents that communicate with customers through text messaging can also close their claims faster. Customers always appreciate an expedited claims process, but it can also net cost savings for the insurer. For example, customers need rental cars while waiting for repairs on their vehicles. Insurance carriers often cover the rentals costs, and closing the claim several days faster curtails that expense. Contact the experts at Actec to learn how text and chat services can improve your customers’ claims experience.