First notice of loss plays a critical role in many organizations. The manner in which data is reported, transmitted, managed, stored, organized, and used will dramatically impact the efficacy of an FNOL operation and everything it touches. Whether in use by an insurance carrier, an airline, or other FNOL-dependent organizations, success has been redefined by the widespread implementation of technological advancement. What kinds of technology play such an important role?
Electronic Data Interchange – FROI, SROI and medical bills can be carefully reviewed before submission to avoid delays. This can improve customer service while decreasing costs and reducing error.
Adaptable, Cloud-Accessible Database Functionality – Keep data in the form most conducive to its users with unique, cloud-accessible implementations of data intake, organization, and management.
Multifold Communication – Leveraging modern communication tools like social media and texting to communicate reduces lag time in reporting and management while increasing customer and employee satisfaction.
High Fidelity VoIP – Increase bandwidth, record communications for further analysis, and decrease costs with internet-based telecommunications.
To learn more about first notice of loss and technology-based implementations, read our blog posts or contact us.
Category: First Notice of Loss
Why First Notice of Loss is Important to Policyholders and Insurers
When a policyholder first contacts their insurance after an accident or theft, they are contacting a first notice of loss (FNOL) call center. These call centers operate all year round to make the claim process go as smooth as possible for the policyholder. FNOL call centers also benefit the insurance companies as well. They guarantee the insurer receives the relevant claim information as soon as possible
FNOL and the Policyholder
FNOL is important to the policyholder for a number of reasons. The most important is it gets the ball rolling on their claim. Some insurance companies have different procedures for various types of claims. This can be confusing for a policyholder, especially while they are dealing with a stressful situation like an accident or theft. The FNOL agent can help guide the policyholder through the process to reduce stress and confusion.
FNOL and the Insurer
Efficient FNOL call centers enhance a policyholder’s trust in their insurer. An FNOL call center agent is the first person the policyholder will speak with during the claim process. This presents the opportunity to show policyholders that their insurer can handle their claim with competence and care. As a result, the FNOL process can play a big role in customer satisfaction and retention.
Full-Cycle Claim and Incident Reporting
Proficient FNOL call centers are only the first step to ensuring excellent claim management. Taking a full-cycle approach to the claim process shows policyholders their insurer cares more about delivering satisfactory service than transferring information to the appropriate department. Actec is the premier leader in full-cycle claim and incident reporting. To learn more about implementing a full-cycle claim management process, contact the experts at Actec.
Automated FNOL and Claim Intake
Many companies are looking for ways to improve their claim intake process. Technological solutions are often a high priority. Such technology boasts electronic crash detection, automated first notice of loss (FNOL), prognostic solutions that aid in the vehicle repair process, and more. It works for insurers similar to how OnStar functions for drivers. However, while there are benefits to such technology, there are a number of drawbacks as well.
Benefits
- Collision injury support. The technology includes contacting rescue support in the event of a collision. Even if the driver is not injured, knowing that assistance is on the way can help keep them calm. This is helpful for drivers who do not have security systems like OnStar.
- Automated claims. Many policyholders are shaken up after an accident. They may not think to contact their insurance right away or may be too panicked or injured to do so.
- Reduce hit and run incidents. This technology can help eliminate hit and run collisions. If the policyholder flees the scene of the accident, their insurance company will still know about it. The police will be able to subpoena the insurance company for the information and help aid the other individual involved in the accident.
Concerns
- Fender benders. If an accident is not severe and the damage caused is negligible, the policyholder may not wish to contact their insurance. Accidents increase insurance rates, so some policyholders opt to pay for repairs out of pocket. This technology would inform the insurance company regardless, triggering the first notice of loss.
- Overtaxing law enforcement. While the technology can assess the severity of the crash, it will always notify local law enforcement. Minor incidents do not often require a police presence.
- Damage to the vehicle. In order to get the most accurate damage estimates, a physical person should inspect the vehicle. If the predictive technology is imperfect then the policyholder may not receive adequate money to repair the vehicle. The vehicle may even be beyond repair.
To achieve similar benefits without the significant drawbacks of such an implementation, it’s best to develop in-house solutions that work and improve your FNOL and claims process. To learn more about how to improve your claims management process, contact us.
FNOL: Is Your Claims Process Hurting Customer Retention?
When a customer first contacts their insurer, this is the best chance to have a lasting and positive influence on their experience. However, if the notice of loss process is not efficient or requires a lot of leg work on the customer’s part, they will likely have a long-term negative association with their insurer. Once the customer initiates the process, other factors begin to affect their overall perception as well. Communication with employees, ease of understanding the claims process, and how fast the insurer handles their claim all contribute to the customer’s final opinion.
Ineffective claims processes are often the root of customer dissatisfaction. Traditional claims processes segment the claims manually which can lead to delays. Another element that slows down the claims process is high employee turnover rates. This reduces work quality and further interrupts the process.
A major way to improve customer satisfaction is to meet their technological expectations. Many customers want a digitized claims process that is clear and progresses without their continued input. While dated systems can hinder this, there are ways to improve the customer’s experience.
To improve the FNOL process, insurers can:
- Automate the initial claims process by going digital. Automating segmentation can reduce the amount of effort required for both the customer and the insurer.
- Engage in proper staff management and forecasting. If an insurer knows what time of year is busiest, they can fill labor gaps without overtaxing their permanent workforce. This will reduce turnover and training time as well as increase work quality.
By focusing on meeting the customers’ needs and expectations during their time of crisis, insurers can improve customer satisfaction and retention. To learn more about claim management, contact us.
5 Steps to Improving Your Claim Intake Procedures
Claim intake strategies are as varied as the business landscape of the United States. Different organizations require different approaches, starting with an in-depth analysis of status and objectives. Deriving claim intake procedures from your unique needs ensures development of a custom workflow that fits. It’s critical to use your business rules to ensure accuracy, minimize call times, and reduce follow-up calls.
- Develop a best practices workflow for thorough and logically organized reporting
- Make claim reporting available through many media: telephone, e-mail, fax, website, even social media
- Implement a contact tracking module, to improve forms management and dissemination capabilities
- Rapid response to critical incidents including clear escalation procedures
- Ensure correct routing of claims with coverage verification and claim office assignment
While all of these capabilities can be developed in-house, it’s often more efficient and effective to outsource them to a professional claim intake center. To learn more about claim management, custom intake solutions, and outsourcing, contact us.
5 Key Terms in First Notice of Loss Operations
There several important terms when discussing first notice – some may seem esoteric, others mundane. But understanding their full meaning and method of execution can dramatically improve business operations for organizations of all shapes and sizes. A positive FNOL interaction is key to successful business operations – from client relationship management to risk reduction.
1. First Notice of Loss (FNOL) – The initial report of a claim or incident resulting in loss of an insured product. A crucial element of insurance coverage. This discipline and its various constituents is now dependent upon a vast array of technologies, from data management and communications software to social media awareness and forensics.
2. Claim Intake – The initial interaction between claimant and professionally trained personnel – a critical step in the FNOL process.
3. First Report of Injury – The initial report of a claim or incident resulting in injury to an employee. A employer practice required by law.
4. Claim Handling/Claim Management – The conveyance of an insurance-related claim through a system of communication and investigation to ascertain the appropriate compensation. The more adept and timely the claim management, the less shrink for insurers and the higher satisfaction for clients.
5. Incident Reporting – A system of documentation for FNOL in which specific details must be thoroughly recorded to ensure proper claim management. Well-trained personnel and a modern, sophisticated incident reporting medium significantly reduce costs due to slow resolution, shrink, and other organizational issues.
There are other components of FNOL, but familiarity with these 5 key terms will illuminate much of our industry and its purpose. To learn more, contact us.
Claim Intake – What's Your Solution?
Claim management is a critical issue for most insurance companies. There are two major categories of tasks involved in the claim management process – claim intake and claim handling. Claim handling usually gets a lot of focus, due to its complex and often-drawn-out nature. But claim intake is an equally important part of the process, and warrants special consideration for a variety of reasons. The most significant reason is that poor or unsuccessful claim intake can result in one or both of the following major consequences: inaccurate case information that will lead to failures in the claim management process and customer dissatisfaction that can lead to loss of business.
Most people and companies are often unaware that when they first contact their insurance provider to report theft, loss or damage that they are actually contacting a first notice of loss (FNOL) call center. Call centers can be highly professional and serve a wide variety of insurance and other claims-related businesses. But beware – not all call centers are created equal. Yours should offer 24/7/365 operation to ensure convenience for clients and timely claim transmission for your organization. First notice of loss operations are sometimes staffed internally, but more frequently these days, the operations are outsourced to a specialist. As with most round-the-clock operations, staffing, training and accurate claims intake are challenging for any organization.
There are different types of vendors which offer solutions for FNOL – some offer software, others offer a comprehensive call center based on a proprietary application, and still others customize their call center operation to accommodate any platform. These are platform agnostic vendors who claim to work with insurance companies’ existing platforms. While there are a variety of solutions available, some will serve your organization more effectively than others. To learn more, contact us.
Do Your Customer Relationships Have Spark?
The First Notice of Loss process is an important part of your relationship with your customers. If you want your relationship with customers to have spark, then you need to have these four key elements.
- The willingness to be flexible: FNOL Strategies and the claims process need to be iterative. If your company always looks for ways to exceed customer expectations, then you will have a strong relationship with your customers.
- The willingness to work together: If you want to know how to improve customer satisfaction you need to work with your customers. They will be able to provide you with insights that are impossible to gain any other way.
- The willingness to increase loyalty: Don’t think that just because a customer doesn’t complain that they are happy. Always work on increasing the loyalty of your customers to make sure they have bought into your organization wholeheartedly.
- The willingness to respond positively: Don’t respond negatively when a customer complains. If they didn’t care about your organization, they would leave. Take their criticism as it is intended and work on improving your processes.
Sometimes changes in FNOL processes don’t start within the organization. There are times when your customers are signifying that your company needs to change certain procedures with complaints on social media, via emails and customer service phone calls. Learn to listen to these criticisms and have a mechanism in place to make improvements based on customer feedback.
And for more valuable information on improving your FNOL processes, contact the experts at Actec.
5 Ways to Personalize First Notice of Loss Reporting
Your FNOL team will be seen as the voice of your company by your customers. It’s essential to personalize the way your organization handles First Notice of Loss reporting by following these five tips.
Communicate with Sincerity
You want to make sure all of your communications with customers are sincere, especially when handling a claim. Have live operators to handle FNOL calls and have them identify themselves to the customers. Hire representatives who have people skills as well as technology skills and who share your company values.
Handle Claims Proactively
Make sure claim representatives don’t just take down information and fill out forms. Train operators to be able to notice potential underlying issues and resolve them immediately or pass the information on to the right department. Solving problems before they occur will help the claims process run smoothly and increase customer satisfaction.
Offer Convenient Communication Channels
Multi-channel FNOL reporting has become an essential element – leverage this strategy by having the same operator help process the claim from start to finish, even if this occurs over multiple channels. If one representative answers a customer’s tweet, email and phone call the customer will feel a personal connection to the employee and this will improve their experience.
Offer Multiple Methods of Form Delivery
In addition to allowing customers to file their claims on multiple channels, your company should also be prepared to deliver forms in multiple ways. Attaching a jpeg to a tweet, texting information or attaching forms in an email can help customers receive the paperwork they need sooner so they can begin the recovery process faster.
Don’t Promise What You Can’t Deliver
In an effort to calm an upset customer, a customer service representative may make promises the company can’t keep. Not only does this not improve the situation, it can hurt the company’s reputation. Train your representatives to only make promises the company can keep and to always tell customers the truth, even if it is something they don’t want to hear.
Learn more ways you can improve your First Notice of Loss reporting by contacting the experts at Actec.
FNOL: Goodwill Towards Non Customers
Efficient First Notice of Loss processing helps with customer retention. FNOL strategies can also help improve the reputation of your brand. When you are considering FNOL systems, understand you also need to consider people who aren’t your customers.
If your customer is involved in a car accident that involved another vehicle, your company will also have to work with the other driver and their insurance company. During the claim process you may need to speak with the other driver, either verbally or in writing. The speed with which you handle your company’s end of the claim process will affect the attitude the non-customer will have regarding your company.
Different areas where you can shine during the FNOL process include:
- Contacting the other party’s insurance company regarding the accident
- Contacting the other driver regarding your claims process and what your company will contribute should your insured be found liable
- Working with the other company regarding assessing blame
- Working with the other company regarding what your company will pay to satisfy the claim
- Issuing any funds owed to the other driver.
If the other company handles the FNOL and claims process more efficiently than your organization does, this can have a negative effect on your company’s brand.
Even though that person may not be your customer now, they may be considering switching insurance companies in the future. If the other insurance company offers superior customer service, then the insured may decide to stay with that company. They may also tell others about their bad experience, which may affect the number of customers you gain in the future.
If you offer superior customer service and the other company doesn’t excel in the claims process, then the other driver may decide to switch insurance companies after the claim is processed.
An efficient FNOL process affects your ability to retain your current customers and help you gain more customers in the future. Contact the experts at Actec to learn how you can streamline your FNOL process.