Elements of Effective Digital Claims Management and FNOL

Posted on

March 16th, 2021


Insurance companies rely on key performance indicators (KPIs) to evaluate the effectiveness of their processes. Insurers can generate more value for the customer while reducing their expenses by focusing on the following foundational KPIs:

  • Customer experience
  • Claims efficiency
  • Claims accuracy

The most direct means to boost these KPIs is by digitizing the claims process. Digital claims simplify the process for customers by allowing them to electronically initiate first notice of loss (FNOL), upload images, and receive updates about their claims. Digital processes are also more efficient than manual claims management, as they allow agents to process more claims in less time. Digital systems can identify errors and red flag potential problems as well, which helps avoid clerical delays.

It can be challenging for insurance providers to make the leap as technology is constantly evolving. However, the most successful digital transformations share several elements:

  1. Digitizing claims prevention efforts. Insurance companies have a trove of data available to them to identify customer trends. By issuing data-based safety notifications, insurance companies can provide simple tips to help customers avoid a loss. For example, if the weather forecasts a winter storm, insurance providers can send automated texts to their customers with tips for driving during winter weather. Reminding drivers to slow down, put chains on their tires, or stay home unless it’s necessary to go out can help prevent claims.
  2. Digital FNOL. Customers expect fast and simple solutions to all their problems, but their urgency increases exponentially following a loss. Providing a digital, easy-to-use option for FNOL gives customers agency over their claim while expediting the process. Implementing text or chat FNOL services provides customers with another channel of communication. This service allows them to obtain answers to common questions about their claim, which eliminates confusion and anxiety.
  3. Automating claims management processes. Automating fraud detection, progress updates, and other administrative processes drastically improves claims efficiency. Digital software can identify the type of claim, route it to an appropriate agent, check it for fraud, and more within minutes compared to the lengthy process of checking it all by hand.
  4. Electronic appraisals and repairs. For simple claims, customers can submit details and pictures that allow appraisers to assess the damage or loss. Insurers already have a list of their preferred repair shops. Digitizing the process can identify which provider is closest to the customer. They can even schedule the appointment electronically, so the customer doesn’t have to do any heavy lifting during the claim cycle.
  5. Automatic settlements. One of the biggest pain points for customers is when a repair vendor is out of sync with their insurer. They may have to pay for the expense out of pocket and seek reimbursement from their insurance provider. However, the insurer may have already sent the payment to the vendor, which worsens the customer’s confusion and frustration as they try to get their money back. Automating the process eliminates this bottleneck. Insurers can automate several types of settlements, such as paying for a repair service, replacing the damaged item, or offering a cash settlement.

Digitizing claims processes can generate value by boosting KPI performance. While every step of the claim should be custom-centric, FNOL is the single greatest opportunity insurers have to secure customer satisfaction. Contact the experts at Actec to learn how text and chat FNOL services can improve claims management.

How to Offer Superior First Notice of Loss Support

Posted on

July 6th, 2020


When a customer first contacts their insurance provider to report an accident, theft, or other covered incident, they’re initiating first notice of loss (FNOL). Most insurance carriers know that FNOL is critical to securing customer satisfaction. However, insureds are often upset when they begin FNOL as they’ve just experienced a loss so their tolerance for mistakes or delays is low. Inefficient processes, clunky communication, and data intake errors will further upset them as well as lower customer approval and erode loyalty.

Thankfully, insurance providers can take the following steps to improve FNOL and customer satisfaction:

  1. Identify workflow bottlenecks. One of the most common customer complaints regarding their insurance company is a delay in claims processing. Whether the adjuster is missing critical information, the claim requires a specialized adjuster, or there are documentation errors, delays can derail customer satisfaction. Finding common headache sources during FNOL and rectifying them can keep customers happy.
  2. Provide options for FNOL. When an insured needs to report a loss, they don’t want to jump through several hoops to get to the right person. Providing several options for reporting FNOL allows insured customers to initiate FNOL when, where, and how they prefer. This means offering intake options via telephone, a web portal, text messaging, etc.
  3. Engage with customers digitally. Even with optimized claim intake processes, insurers may require more information than they captured during FNOL. Sending missing information alerts via text messaging allows customers to provide the information quickly and keeps the claim on track. Digital channels of communication such as chat support improve transparency as well as customers can receive updates on their claim status, settlements, and more.

Implementing chat and text functionality is of particular benefit to insurance carriers. It creates a new channel for claims intake while providing superior service to insured customers experiencing a loss. Chat support can also answer common questions regarding claims, which allows insurance adjusters to focus on processing claims faster.

If your FNOL process is creating more headaches than its solving, Actec can help. Contact us to learn more about enhancing FNOL, implementing new communication channels, and improving claims management.