Insured drivers are usually under a significant level of stress when they first contact their insurance company to report a car accident. Their mind often races ahead, and they overwhelm themselves before the process begins. Insurance adjusters can calm frazzled nerves and help guide the insured through the claims process.
For example, many claimants do not know what information insurance companies need before they can process the claim. Below are several common pieces of data insurance companies require:
- First notice of loss (FNOL) and the insured’s version of events
- The other driver’s statement
- The police report
- Statements from any witnesses
- The damage at the accident site
- Medical records for any injuries
Phase 1: Site of the Incident
Insurance companies need to stress to their customers the importance of FNOL at the scene of the accident. Many individuals assume they do not need to contact their insurance company if they were not at fault, but this is not the case. The insurance company will not know who is at fault until after they gather and review all of the above information. This process happens much faster when all involved parties report to their insurance company.
Phase 2: Collecting Information
Insurance companies begin gathering data almost immediately upon FNOL. This is because the information is still fresh in the individuals’ minds. Agents should instruct their customers to record as much information as possible (i.e. time of the accident, which direction the parties were driving, how fast each person was driving, etc.). This is also a good time for the insured to take pictures of any damage to their vehicle or person.
Phase 3: Resolving the Claim
Once the individual’s insurance company has all of the relevant information, they can prepare a settlement offer. How insurance companies handle claims helps determine the customer’s overall satisfaction. It can also affect customer retention, so it behooves agents to provide quality support. For example, to ensure a smooth claims resolution, agents should do the following:
- Recommend that the insured keep track of any injuries, pain, and medical records for treatment.
- Recommend the insured document any time they took off work to recover from the accident.
- Recommend that the insured track their travel costs to and from medical appointments. They should keep receipts for any co-payments and prescriptions as well.
Agents should stress that all of the above information helps them determine a fair settlement. By positioning themselves as a concerned party rather than a combatant, agents can pave the way for a smooth resolution. To learn more about improving FNOL and claims management, contact the experts at Actec.
Customers never think about insurance until they need it. When it comes time to file a claim, consumers want the process to be fast, streamlined, and accessible. By modernizing your FNOL processing you will be able to improve the customer experience.
The number of automated processes within any given vehicle continues to grow as technology progresses. Fully autonomous vehicles are on the horizon and insurance companies need to prepare themselves for this reality. Autonomous vehicles will change claims management to a significant degree. Some examples of these changes include:
As more cars integrate some sort of smart technology, auto insurance agents find themselves wondering if they will soon be out of a job. While OEMs can report accidents and get the first notice of loss (FNOL) process rolling, agents can rest easy. Customer, particularly younger customers, still want a human element involved in their claims process. This is great news for insurance agents as Generation Y made up the largest portion of auto insurance claimants for 2016 at 40%—this is a 7% increase from 2015.
Some fraudulent insurance claims are obvious right away. For example, a customer may call to claim he or she was in a hit-and-run accident. They may describe the car as red, but pictures from the scene show blue paint transfer. While the agent managing the claim may never know the truth of what happened, a customer’s motive for filing a false claim is usually financial. If the customer recently lost their job or has excessive monthly car payments, that may be their incentive to offload the vehicle. Most claims do not involve fraud, but agents should make themselves aware of the following warning signs.
Claims denial is part of any insurance revenue cycle, particularly when it comes to healthcare. While it is unrealistic to assume claim denials will drop to 0%, there are ways to prevent it from happening. According to the American Medical Association (AMA), denial rates ranged from 0.54% to 2.64% for major private payers and up to 5% for Medicare. Rates are down across the board from 2012, but there is still room for improvement.
First notice of loss plays a critical role in many organizations. The manner in which data is reported, transmitted, managed, stored, organized, and used will dramatically impact the efficacy of an FNOL operation and everything it touches. Whether in use by an insurance carrier, an airline, or other FNOL-dependent organizations, success has been redefined by the widespread implementation of technological advancement. What kinds of technology play such an important role?
There several important terms when discussing first notice – some may seem esoteric, others mundane. But understanding their full meaning and method of execution can dramatically improve business operations for organizations of all shapes and sizes. A positive FNOL interaction is key to successful business operations – from client relationship management to risk reduction.