Notable Trends in First Notice of Loss

Posted on

February 11th, 2019


Many changes are transpiring in first notice of loss. These trends are in the area of pricing, technology, customer behavior, regulation and staffing practices. Companies will have to adapt to survive.

Companies need to balance reducing expenses against ROI of potential investments. This has become important due to the need for FNOL processes to be flexible, available on multiple channels, and responsive against the need to maintain profit margins in an environment where premium growth is slower.

Companies continue to seek better data analysis tools and predictive modeling in order to improve underwriting practices and detect fraud. Better technology is also important to reduce claims cost and increase consistency while providing access on more channels.

Customer Behavior
Connectivity is important to meet customer demand of better pricing, better customer service and increased accessibility. Companies need to be able to understand their customers better in order to enhance the FNOL experience, which is often a key touch point with customers.

Since regulatory intervention and scrutiny is on the rise, companies need to increase key aspects of the FNOL Process:

  • Greater transparency
  • Improved reporting capabilities
  • Streamlining compliance processes

By being proactive when addressing multiple regulations, companies can eliminate the risk of fines and penalties due to compliance issues.

Staffing Practices
The aging workforce is leaving behind a skills gap that is difficult to fill. Most companies don’t have plans in place to meet their future staffing needs nor do they understand the intricacies of recruiting the millennial workforce. Businesses have to start creating recruiting policies today to ensure they have a skilled workforce that will be able to handle FNOL processes quickly and efficiently.
With the changes in pricing, technology, customer behavior, regulation and staffing practices, many businesses are finding it difficult to maintain an efficient FNOL process. Contact Actec today to learn how they can help you manage this vital customer touch point.

3 Surprising Trends Pioneering the FNOL Revolution

Posted on

February 12th, 2018


what's next imgSeveral factors are driving change when it comes to First Notice of Loss (FNOL). Before sophisticated technology became commonplace, first notice of loss was almost universally initiated via a phone call.  Now, policyholders can log onto their computers or phone apps to trigger FNOL. Although this change seems monumental, it is nothing compared to the latest trends looking to shake up the industry.

The Shifting Definition of Work

Until recently, the workforce was 100 percent human. With the rise in artificial intelligence (AI) and machine learning, however, that is set to change. Machines can now finish several tasks in minutes that would take humans several hours to complete. While businesses cannot and should not automate all tasks, automation is changing how people perform their jobs in the insurance industry.

The Cycle of Retiring and Rising Employees

The insurance workforce is on the precipice of major change. The industry expects around 70,000 of its professionals will retire in the coming year. While many are looking to millennials to fill that gap, there is the significant problem that almost two-thirds of them have a negative view of the insurance sector. Even though millennials will make up almost half of the workforce by 2020, the insurance industry will still have a labor problem on its hands if it does not change millennials’ perception of the insurance sector.

The Decline of Mobile App Use

In two years’ time, experts predict that mobile app use will drop by 20 percent. However, this does not mean technology is a waning trend. Instead of using mobile apps to initiate FNOL or ask claims questions, people will utilize chatbots. This technology relies on AI and language processing to complete simple tasks while providing satisfactory interactions. Even though many rebuke the idea of chatbots, this technology has made major strides in recent years. The experience is so seamless that many individuals do not realize they are chatting with a machine rather than a person.
Insurers need to keep up with industry trends or risk falling behind their competition. That is why Actec offers FNOL and full cycle claims solutions to address insurance company’s needs. To learn more about improving FNOL and claims processing, contact us today.