In your customers’ eyes, the quality of claims experiences is what insurance is all about. And all this starts with the first notice of loss (FNOL) process.
The way an insurer handles FNOL comprises 25% of an insurance customer’s overall satisfaction level. But, too often, insurers get it wrong. The poor experiences they offer policyholders during the sensitive and often stressful claim process end up alienating them.
At a time when the industry is under more pressure than ever, and competition for market share is fierce, delivering superb FNOL services is essential.
Why Giving Customers a Great FNOL Experience Matters
At its best, the FNOL experience can make the customer finally feel that all those premium payments were worth it. At its worst, the FNOL experience is the final straw that propels them to start shopping for alternatives.
So, where are insurers going wrong? In a recent survey of customers who were dissatisfied with their claims process experiences:
- 25% said the process was too slow.
- 22% said the process was difficult.
- 22% said there was too much paperwork involved.
Strategies to Up Your FNOL Game
Taking your FNOL process from good to great requires a multi-pronged approach that puts the customer experience front and center:
- Multichannel Options: You need to give your customers freedom of choice about how they initiate and manage the claim process. Everyone will have their own preferred channel(s), be they email, telephone, self-service portals, call centers, chatbots, or in-person meetings. Importantly, all these multichannel touch points need to interoperate and be centralized on a single customer-facing platform.
- Hyper-personalized: Your customers know you already have plenty of information about them and they expect you to use it to improve their overall claims experience. You’ll only frustrate a policyholder if you start asking them basic questions such as the make and model of their vehicle when it’s already in your system.
- Fast and Frictionless: The entire FNOL process should be as fast and seamless as possible for your custom er.
Digital Doesn’t Replace the Human Touch
While it might sound counterintuitive, tech advancements like artificial intelligence and machine learning can actually help you deliver better FNOL customer experiences.
For example, machine learning tools can quickly determine what’s involved in a policyholder’s claim and forecast the potential costs involved in a matter of minutes – a task that might take a human agent hours or days. The technology can analyze images, sensors, as well as volumes of historical data. An FNOL agent can then look over the results to verify them and settle the claim much faster than they could on their own.
But while advances in digital technologies can go a long way to ensuring you deliver on the abovementioned FNOL imperatives, retaining the human face of your organization is essential.
Here’s why “people power” matters:
According to a recent survey, while customers are becoming more comfortable using digital claims tools, most still rate being able to communicate with a human agent near the top of their list of priorities.
Of the auto or home insurance customers who filed a claim in 2021, only 40% interacted with an estimator via digital channels, and only 47% made a claim via a website.
Forward-looking insurers understand they need to invest in technology that augments and extends their employees’ capabilities rather than replaces them.
FNOL Will Always be a People-Process
Despite advances in digital technology, an insurer’s ability to provide immediate, personal, and empathetic FNOL services will ultimately make (or break) their ability to realize their customer satisfaction success objectives.
How you handle FNOL has the power to prove your value as an insurer. Do you have the expert people-power to make it happen?
Why Collaborate with Covenir for FNOL Support?
If you’re ready to take customer-centricity in FNOL to new heights, Covenir is here to help. Our team can assist in the following ways in this area:
- Available 24/7/365 for FNOL receipt and claim support
- Expert, empathetic claims services for all types of personal and commercial insurance lines, with deep expertise in auto and homeowners’ claims
- Custom, tailored services to meet your needs
- Extensive onshore industry experience
- Available to extend your team during busy times, after hours, or for catastrophe response
- A flexible, collaborative “test and learn” approach
- Able to support 175 languages
Our services don’t stop at FNOL support activities such as phone calls and email support; they can extend to all aspects of the customer experience, from claims to policy renewal and beyond.
Case in Point
Allied Trust turned to Covenir for FNOL services in 2018. The Covenir team was trained to represent the Allied Trust brand, and to do it well.
Vice President of Claims & Operations, Pier Westra, knew that Covenir was a solid FNOL partner. What he didn’t know was how they would perform under stress. In the Spring of 2020, he found out.
A record claim volume occurred in April and May of 2020 due to hail and tornado events in Texas and Louisiana. “We took in more claims by July of 2020 than we received all year in 2019,” says Westra. “Fortunately, it wasn’t an issue. Covenir’s FNOL team did a great job of keeping up and maintaining their high level of service.”
“We are very careful when choosing partners for FNOL support. Covenir has pushed us to a new level. We have increased our capacity to serve our customers while also establishing a better work-life balance for our Elephant team members.”
– Cole Johnson, Claims Controller at Elephant
Learn more about Covenir’s Onshore Insurance BPO services. Frontline Services, Back Office Support, and Customer Communications options. We’re not an extension of your team, we ARE your team. Talk to us today.