First Notice of Loss: Reducing Claim Severity

Posted on

May 11th, 2020



First Notice of Loss (FNOL) is the single greatest opportunity an insurance provider has to establish good

customer satisfaction. If the FNOL process is clunky, stressful, or in any way frustrating when the insured is already in an agitated state, it’s very difficult to regain their confidence. However, much of the problem lies with when an insured initiates FNOL. Few opt to report a loss at the scene of an accident often because the accident rattled them or they aren’t sure who’s at fault.

Capturing On-the-Scene FNOL Data

When an insured begins FNOL from the scene of the loss, it allows the insurance provider to take immediate steps to begin the repair process. They can dispatch a tow truck and coordinate a direct delivery to a repair facility. This reduces the overall time it takes to close the claim as well as reduces expenses related to retrieving inoperable vehicles on the insured’s behalf.

Of course, this is reliant upon the insured initiating FNOL immediately after an accident. While insurance carriers can’t control the insured’s behavior, they can utilize FNOL automation technology and vehicle telematics from in-vehicle sensors to detect that an accident occurred before the insured places the call to their insurance provider. Whether through on-board diagnostic devices, data from connected vehicles, or relying on smartphone sensors, insurance carriers have a number of options for detecting accidents and getting ahead of a claim.

Reducing Fraud During FNOL

Telematics can be particularly helpful as the data can provide details the insured may not remember following an accident such as the exact time and location of the crash. Having these details within the hour of a loss is also an effective means of reducing fraud. Details can become sketchy or incomplete the longer an insured waits to report an accident and telematics eliminates several areas of ambiguity.

FNOL is a critical moment during any claim for both the insured and their provider. When managed swiftly and efficiently, insurance providers can reduce claim costs while improving customer satisfaction and loyalty. To learn more about improving claim intake and management, contact the experts at Actec.