FNOL: Staying ahead of customer expectations

The insurance industry is on track to adapt to a rapidly changing marketplace as customers seek digital solutions that improve the claims process and their experience interacting with insurance carriers.

Customers today are carefully considering insurers’ websites and portals as part of their decision-making process when choosing insurance policies. Customer satisfaction is also critical to retention, as 86% of customers will quit doing business with a company due to a negative customer experience.

As the industry continues to shift toward customer-centricity, insurance companies will need to rely on data analytics and InsurTech tools to maintain pace with ever-evolving customer service expectations. This focus on customer contact and experience needs to begin as early as the first notice of loss (FNOL). If a supportive and effective experience can be delivered to the insured from the beginning, providers can be confident in customer retention and increased ROI for each policyholder.

FNOL: The foundation of trust

According to the J.D. Power Auto Claims Satisfaction Study and Property Claims Satisfaction Study, the way an insurer handles FNOL comprises 25% of an insurance customer’s satisfaction level. This crucial moment is often the first interaction between a policyholder and adjuster and usually occurs during a stressful time for the claimant.

However, insurers that can provide calm, professional guidance during what is often a difficult time for the insured can significantly boost their customer satisfaction and retention.

The importance of brand loyalty is nothing new to insurance providers, but customer expectations are evolving, and traditional solutions may not be sufficient anymore. Insurers are now expected to take the level of service a step beyond the standard practices of recording statements and putting a claim in motion.

From FNOL, policyholders want seamless communication with their adjuster, repair facility or technician, and expect it to be facilitated by the insurer. Guaranteeing transparency in claims processing and improved scheduling of estimates during FNOL interactions will enhance customer trust. Happy claimants increase an insurer’s ROI as satisfied customers become a company’s biggest advocates.

One recent survey found 80% of customers are influenced by recommendations from friends and family as well as online reviews when deciding on their insurance. Satisfied insurance customers are 80% more likely to renew their policies than unsatisfied customers.

The power of digital tools: Speed and savings

A successful FNOL interaction requires streamlined processes that can be delivered immediately to the client. Agent guided service and self-service customer portals allow a modern, user-friendly claims process without common complexities. Through customer portals, policyholders have the autonomy to self-select appointment times, upload pictures and descriptions and access real-time status updates from FNOL, resulting in a 27% improvement in net promoter scores and a 30% improvement in customer satisfaction ratings. These powerful digital platforms give customers more control over their experience while artificial intelligence technology amplifies adjuster efficiency and optimizes field service schedules.

In many cases, speed is of the essence during FNOL. If a customer is filing based on theft, specific loss notification and prompt reporting to the police is vital, and insurance providers can aid in increased recovery of property if they work quickly. Each individual policy requires specific information intake at FNOL that impacts the resulting claims processing. Digital solutions like field service management platforms allow insurers to expedite activity with automated claims processing and schedule optimization that enables adjusters to reduce time onsite and maximize productivity, thus increasing policyholder satisfaction while reducing expenditures. Reevaluating FNOL processes allows insurers to utilize digital technology in conjunction with analytical claim solution tools and when combined with a successful notice of loss organization, can transform claim-handling for every provider.

Modernizing to deliver on customer expectations

FNOL is a critical time for the insured and insurer. While the former deals with damage or loss of property, the latter can deliver exceptional customer service to assuage the stress of their client. This first interaction can alter the claimant’s perception of the provider indefinitely, and as premiums steadily increase, so do challenges with customer satisfaction and retention. By harnessing digital solutions in the modernizing insurance industry, companies can ensure quick turnaround times and reduce costs.

Insurance companies must execute the least costly and most efficient processes from the FNOL to estimate, repairs and claim payments. Digital tools can help automate claim processing, stop fraud through intelligent audits, optimize routes to maximize adjuster productivity and provide web-based applications to consumers so that they can schedule appointments and track adjuster ETAs. These solutions can help insurance companies deliver on growing customer expectations and deliver an exceptional customer experience.

Samir Gulati is chief marketing and product officer at ServicePower, a leading field service management software company focused on providing exceptional customer experience and delivering significant operational efficiencies. This contributor can be reached by sending an email to info@servicepower.com.

Keep reading…

• Nearly half of agencies lose 15-20% of policy renewals each year
• Touchless claims can save the insurance customer experience
• From FNOL to settlement — data matters