Notable Trends in First Notice of Loss

Posted by Andrew on February 11, 2019

Many changes are transpiring in first notice of loss. These trends are in the area of pricing, technology, customer behavior, regulation and staffing practices. Companies will have to adapt to survive.

Pricing
Companies need to balance reducing expenses against ROI of potential investments. This has become important due to the need for FNOL processes to be flexible, available on multiple channels, and responsive against the need to maintain profit margins in an environment where premium growth is slower.

Technology
Companies continue to seek better data analysis tools and predictive modeling in order to improve underwriting practices and detect fraud. Better technology is also important to reduce claims cost and increase consistency while providing access on more channels.

Customer Behavior
Connectivity is important to meet customer demand of better pricing, better customer service and increased accessibility. Companies need to be able to understand their customers better in order to enhance the FNOL experience, which is often a key touch point with customers.

Regulation
Since regulatory intervention and scrutiny is on the rise, companies need to increase key aspects of the FNOL Process:

  • Greater transparency
  • Improved reporting capabilities
  • Streamlining compliance processes

By being proactive when addressing multiple regulations, companies can eliminate the risk of fines and penalties due to compliance issues.

Staffing Practices
The aging workforce is leaving behind a skills gap that is difficult to fill. Most companies don’t have plans in place to meet their future staffing needs nor do they understand the intricacies of recruiting the millennial workforce. Businesses have to start creating recruiting policies today to ensure they have a skilled workforce that will be able to handle FNOL processes quickly and efficiently.
With the changes in pricing, technology, customer behavior, regulation and staffing practices, many businesses are finding it difficult to maintain an efficient FNOL process. Contact Actec today to learn how they can help you manage this vital customer touch point.