Utilizing data and analytics can transform how insurance companies operate. However, there’s a misconception that insurers can upgrade their systems and automatically reap useful customer insights. Inputting data is not enough. Insurers need to delve into multiple elements to make the most of improved data collection. These components include:
- Digitalization
- Risk management
- Technology
- People/Subject matter experts
For first notice of loss (FNOL) purposes, digitalization plays the biggest role. Insurers who realize this and adapt can keep pace with the rapidly transforming insurance industry. For example, insurers who implement effective data collection and analytics analysis can use a plethora of behavior-based information provided by their customers.
Most customers are willing to share this information because it secures improved and personalized policies and services. This data aggregation process is digitalization. Gathering customers’ data to provide products tailored to their needs saves the customer time and provides value over other companies that do not perform this service.
Having this data automatically available saves time for FNOL as well. Prefilled data can pull driver, vehicle, and policy information for verification purposes. Digitalization also improves information accuracy as it removes the element of human error. This can help reduce FNOL from an average of 15-25 minutes to seconds.
FNOL provides insurers with their greatest opportunity to deliver a positive claim experience for the customer. Frustrated customers are less likely to renew their policies or recommend their insurer. Implementing effective data collection and analytics can remove these irritations as well as help insurers provide superior services. To learn more about implementing effective FNOL processes, contact the experts at Actec.