Technology is booming in several industries, the insurance sector included. However, while customers are more than happy to use mobile apps to buy insurance and review their policies, they hesitate to manage their claims this way. J.D. Power conducted a customer satisfaction study focusing on auto insurance and found only nine percent of customers provided first notice of loss (FNOL) via the internet or mobile app. Surprisingly, younger generations also prefer to provide FNOL by phone as a meager 12% reported their claim via digital means.
This would not be a major cause for concern if not for two facts:
- Insurers have invested heavily in technology, and for good reason. The frequency, severity, and cost of claims are on the rise so they need to automate much of the claims process to help manage expenses.
- Customer satisfaction with technological FNOL plummeted 16 points. This means that not only are insurers using technology more often, their customers are not happy about it.
However, not all is doom and gloom for insurance apps. Where insurance technology shines is with status updates. While only 16% of insured individuals use a mobile app to receive updates about their claim, their satisfaction is 33 points higher than those who do not. However, this trend skews toward Generation Y and Millennials. Pre-Boomers, for example, do not care for mobile updates. However, as younger generations begin to eclipse all other insured generations, their preferences will take center stage.
What Does This Mean for Insurance Providers?
Customers prefer the human touch when providing FNOL, but technology still has a place in the claims process. To ensure the greatest customer retention and growth, insurers need to tighten up their FNOL process. They also need to train agents on how to maximize customer satisfaction during the FNOL phase of the claim. From there, insurance companies can automate some of the claims processes without disappointing their customers. Actec can help insurers achieve these goals with our custom claim intake solutions. To learn more, contact us today.
Insurance companies encounter a number of hurdles on their way to business success. Aside from the inherently competitive nature of the insurance field, companies must also remain compliant with strict regulations as well as meet growing customer expectations. An effective claims management process plays a significant role in a company’s relative success within the industry. In particular, a company’s claims management process needs to find ways to control costs, decrease incidents of fraud, and keep customers happy.
With Harvey and Irma making landfall over the past 30 days and wildfire racing through the western states, all facets of the insurance industry are in overdrive. As Jose heads north and Maria further decimates the Caribbean, the importance of accurate first notice of loss can’t be overstated. Here at Actec we’ve had multiple Florida-based organizations move all of their calls to our center here in Atlanta. Some of them started as early as 7 days prior to the storm’s arrival.
Insurance claims, much like hospital patients, require proper triaging. For example, an emergency room will tend to an individual with a bleeding head wound before they treat the patient complaining of a persistent stomachache. Unfortunately, claims do not always follow appropriate triaging upon first notice of loss (FNOL). Inefficient systems and limited data are often the cause of misrouted claims and delays. This aggravates customers and can result in increased costs as well as lost business.
Many industries make use of Artificial Intelligence (AI) for basic customer service tasks. This frees up associates’ time to help customers with details that are more complex. This improves the customer’s experience and boost their loyalty. It is no surprise that AI is making headway in the insurance industry as well.
The benefits of a mobile app for policyholders are obvious. Customers want easier interactions with their insurers and they want to interact from any device. Having a mobile app can improve first notice of loss (FNOL) procedures as well. For example, the customer can upload pictures related to the claim to speed up the process. Mobile apps benefit providers as well by removing inefficiencies and allowing them to take a more active role in resolving the claim.
As insurance and technology evolve, the FNOL workflow process continues to adapt in significant ways. Failure to capitalize on these shifts can leave organizations at a competitive disadvantage, and even affect customer satisfaction and employee morale. Trends to keep an eye on in the next year include: