Is Your FNOL Process Compromising Customer Retention?

Posted by Andrew on March 4, 2019

First notice of loss (FNOL) represents the greatest opportunity an insurer has to secure a positive experience for their customers. If FNOL doesn’t go well, a customer’s satisfaction levels are likely to stay low as it’s very difficult to turn a claim around after this initial interaction. Given enough negative experiences, a customer may look elsewhere for an insurance provider. If insurance companies want to retain their customers, they will need to take several steps to make their FNOL processes as seamless, painless, and effective as possible.

Elements of Effective FNOL Processes

Customers calling in after a car accident, burglary, or damage to their home are trying to establish a sense of normalcy to their lives. They’re likely in a sensitive state of mind and would benefit from compassion from their insurance company. To achieve this, insurers need to make sure they allow customers multiple options to initiate FNOL. Some will prefer to call in the loss while others may want to start it from an app on their phone. They should also be able to obtain easy to understand and straightforward answers to their questions.

Routing claims to the appropriate professional is also vital to customer satisfaction. Improper triaging of claims can cause delays and frustrations for the customer. Today’s customers expect immediate answers and results. Insurance companies that rely on antiquated systems or fail to keep up with modern expectations will fall behind the competition. To avoid this, insurers should implement proven technology and software to streamline the claims process from FNOL to resolution.

Benefits of an Effective FNOL Process

There are several reasons insurers should want to improve FNOL. These include:

  • Increasing customer loyalty and retention
  • Closing claims faster
  • Reducing costs associated with delays
  • Allocating resources to more complex claims processes

Insurance companies can’t afford to overlook their FNOL processes. If they do, they run the risk of losing customers as well as facing backlash on social media. In the age of customer reviews, a dissatisfied customer has very public platforms to air his or her grievances. It costs much less to retain customers than it does to obtain new ones so it’s worth the investment to improve FNOL.

If your insurance company is struggling with inefficient FNOL processes, Actec can help. Contact us to learn more.