4 Ways to Improve the First Notice of Loss Experience
Alex Burgess, Principal Industry Strategist, Hi Marley
It’s a busy time of year for the property and casualty insurance industry. Already on the rise, automotive claims have only been exacerbated by summer travel. And CAT season is well underway in most parts of the country, which can potentially lead to an influx of claims in affected areas. For carriers looking to provide a positive customer experience during this stressful time, here’s an important reminder: in claims, first impressions matter.
First notice of loss (FNOL)—the first step in the claims process—can make or break the claims experience. But how much does it set the tone for the entire claim lifecycle? Hi Marley recently commissioned an independent survey of 800 U.S.-based adults who filed an insurance claim for their home, dwelling or automobile in the past three years to find out.
Our research found that the initial reporting experience influences how customers feel about their claim with nearly 70% of respondents saying FNOL directly impacted their overall claim satisfaction.
With so much on the line during this initial interaction, what can carriers do to improve their policyholders’ FNOL experience? Here are four tips based on the survey findings:
1. Prioritize voice communication
One of the most significant findings from the survey is that claimants prefer to use their voice when making the initial report. Over half (51%) of the respondents reported their claim via a phone call to their insurance carrier, with another 17% reporting through their agent, likely also via phone. This preference suggests that claimants want to share their story in their own words rather than filling out a generic form. Given that accidents are inherently stressful, carriers should aim to make FNOL as straightforward as possible by eliminating unnecessary steps, such as creating a login or downloading an app. Streamlining the process to accommodate voice communication can alleviate frustration and set a positive tone for the claims experience.
2. Keep initial conversations brief
The length of the initial FNOL conversation can significantly impact overall satisfaction with the claim process. When the initial reporting conversation lasted under ten minutes, only 7% of respondents felt it negatively impacted their satisfaction. Conversely, when the conversation extended beyond 20 minutes, the dissatisfaction rate nearly tripled to 19%. To enhance the FNOL experience, carriers should prioritize quick, seamless interactions that efficiently gather all necessary data and set clear expectations.
3. Minimize steps upfront to streamline the claims journey
A seamless claims journey with fewer steps is essential for improving FNOL and overall satisfaction. The survey revealed that policyholders who only had to tell their story once were significantly more satisfied with their claim experience. Carriers should focus on capturing all critical information during the initial FNOL interaction to reduce the number of times claimants need to repeat their story and the number of individuals involved in the claims process. By simplifying the process and minimizing redundant steps, carriers can enhance the overall claims experience.
4. Enable the sharing of photos and videos
The ability to share photos and videos during the initial FNOL report can streamline the entire claims process. According to the survey, 54% of respondents had to work with two to three people throughout their claim and often had to repeat basic details multiple times, creating a poor customer experience. However, those who could send photos and videos with their initial report were more likely to only share their incident details once. The ability to provide adjusters with visual evidence upfront allows for more accurate triage of the claim and reduces the need for claimants to repeat themselves, and ensures they are connected with the appropriate adjuster or department early on. This leads to higher satisfaction, with 50% of claimants who could send photos and videos reporting being very satisfied with their overall claim experience.
The FNOL process is a pivotal moment in the claims journey that can significantly impact overall satisfaction. It’s also one of the most stressful and emotional moments for the policyholder, taking place when the accident, loss or weather event is fresh. By prioritizing voice communication, keeping initial conversations brief, enabling the sharing of photos and videos and minimizing steps upfront, carriers can set a positive tone for the rest of the claims process – and hopefully turn a negative life event into the best possible experience.
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