Smart Devices Changing FNOL for Property Claims

Posted on

February 2nd, 2017


smart devicesMajor sales and ecommerce companies have set the bar high when it comes to customer expectations. As a result, more and more insurance companies are investing in mobile options for their clients. Customers now want mobile alerts, email notifications, and mobile apps to access their claim data at any time from any device.
This trend saw a lot of growth within the automobile insurance industry in particular. Customers could report their First Notice of Loss (FNOL) within minutes of an accident. They could also upload images from the accident. Some vehicles can trigger the FNOL process upon impact depending on if they have an OEM system designed to respond to accidents.

Digitization of Property Claims

Property insurance companies are seeing a similar revolution in FNOL. An increasing number of homeowners are investing in smart appliances and devices for their homes. These appliances and devices are capable of monitoring not only the device, but the surrounding area as well. For example, some homes have smart devices designed to prevent flooding. The device can monitor moisture levels in areas prone to leaks and notify both the homeowner and insurance company of a potential loss.

Smart Devices, FNOL, and Data Security

High-tech homes provides a greater level of convenience when it comes to FNOL and the resulting claims process. However, there is one major issue raised by both insurance companies and customers: data security. Sharing data in this manner carries a much higher risk for cyber breaches. While connected homes are in the early stages, insurance companies should expect to see more as cybersecurity evolves to address modern cyber threats.
Regardless of whether a customer or an electronic device triggers FNOL, it is a vital process in the claim cycle. Mismanaged FNOL can damage customer relationships and reduce referrals as a result. To learn more about FNOL, contact Actec.