Insurers looking to boost operational efficiency and identify areas for cost savings often turn to outsourcing. While there are many insurance workflows that can be outsourced, the First Notice of Loss, or FNOL process, is one of the most common.
Outsourcing the FNOL process provides a wealth of benefits for both insurers and their policyholders. Insurers’ teams can regain valuable time and focus on their core activities, while policyholders enjoy more prompt service from an experienced team of specialists.
As the market becomes more saturated and competitive, insurers are increasingly implementing this win-win strategy. Outsourcing the FNOL process helps insurers foster their competitive edge and provide a better policyholder experience, all while enhancing their internal efficiency. Continue reading below as we discuss how outsourcing FNOL can improve the claims process.
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Introduction to FNOL: The Initial Point of Contact
FNOL is the first step policyholders take when they need to file a claim after an accident or incident. This might well be the first time they contact their insurer since initiating or renewing their policy, which makes it an important interaction. Thus, offering an exceptional FNOL experience is an opportunity for insurers to connect with policyholders for better loyalty and retention.
Streamlining the FNOL Process
Given the importance of the FNOL process in increasing policyholder satisfaction and building loyalty, insurers should look for ways to streamline this stage in the claims process. But, while the process might look straightforward, there are some consistent challenges that insurers need to address if they want the process to run smoothly.
Above all, policyholders want quick and efficient communications with their insurers during the FNOL process so they can resolve their claims as promptly and seamlessly as possible. If an insurer is short-staffed or doesn’t have a dedicated team of FNOL and claims specialists, policyholders might have to wait until there is a representative available. It’s a frustrating experience that may ultimately result in higher churn.
By outsourcing FNOL to a BPO provider, insurers can complete this step in a much more timely manner. In many cases, an outsourced FNOL team is available 24/7/365, meaning policyholders get around-the-clock service any time they need to initiate a claim—something most insurers can’t offer with their in-house resources alone. An outsourced FNOL service provider might also offer multi-language and omnichannel support to better cater to the varying needs and preferences of policyholders.
Further efficiencies can be unlocked thanks to outsourced FNOL teams having specialized expertise in handling the initial stage of the claims process. They know how to gather the appropriate details and information surrounding the claim efficiently, and won’t expend unnecessary time or resources to get this step completed.
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Initiating the Claim: The Crucial First Step
To begin the process, policyholders need to contact the FNOL services team after an accident or incident. They’ll do this through one of the channels designated by their insurer, which could be a phone call, an online form, a mobile app, or live chat.
At this point, the outsourced team begins obtaining accurate details about the incident, which often includes:
- The claimant’s name
- Their policy number
- Contact information
- The date, time, and location of the incident
The FNOL provider may request additional information, like a detailed explanation of what happened and the extent of damages or injuries caused by the incident. It’s important for the FNOL team to receive details quickly and accurately in order to streamline the rest of the claims process. If key details are missing and need to be requested after the fact, it could severely slow down the claims resolution procedure with back-and-forth communications between the FNOL team and the policyholder.
Analyzing and Assessing Claims
After collecting information surrounding the incident, the outsourced FNOL team should have enough to proceed. They will first conduct an assessment to determine the severity of the claim and prioritize it if necessary, for example if there’s been a significant financial loss, injury, or property damage from the incident.
Then, the FNOL representative will verify the policy details to ensure it is active and the reported incident is covered, and check for any deductibles or coverage limitations. This is a crucial step that helps detect any fraudulent claims and limits potential losses for the insurer.
Once this information has been verified, they will enter the provided information from the claimant into the insurer’s system so it can be processed and assigned to the appropriate claims adjuster. The FNOL team should confirm with the policyholder once their claim has been successfully filed and assigned. Again, speed and accuracy from the outsourced team are essential here, to help resolve the claim more quickly to ensure policyholder satisfaction.
Final Resolution
To complete the process of filing a claim, the FNOL team securely transfers all information and data to the claims processor. The FNOL representatives can still act as a point of contact between the claims team and the policyholder, updating them throughout the process and requesting any follow-up information as needed.
The assigned claims adjuster will take over, continuing to investigate and assess the claim until they reach a resolution. Should the claim be approved, a payment will be initiated to the policyholder to wrap up the process.
Optimize Your FNOL Process with Covenir
By outsourcing the FNOL process, insurers can speed up the claims filing process from the beginning and regain valuable time for their team to focus on other core activities.
At Covenir, we understand that in today’s competitive marketplace, insurers need to stay agile and adopt a more policyholder-centric approach if they want to stay ahead. Our FNOL and claims team is comprised of expert specialists who can handle all claims initiations with professionalism, empathy, and efficiency. We integrate seamlessly with your team to offer on-brand service that your policyholders expect on your behalf—so you can focus on the strategic initiatives that move the needle forward for your business.
With 24/7/365 FNOL service available in 175 languages, you can offer reliable service for your policyholders to initiate a claim at any time, from anywhere, with Covenir as your outsourced partner. Our team is flexible and scalable, so we can tailor our services to meet your exact FNOL support needs. To learn more about our FNOL and claims services, get in touch with us today—we’d love to hear from you.
Ask us about our staffing solutions for FNOL and more.