With the advent of digitalization, consumers expect insurance companies to provide a quick, low-touch, and omnichannel claims experience. The industry is adapting to a swiftly changing market as consumers aspire for digital solutions that refine the claims procedures.
Claims are one of the most crucial touchpoints in the insurance sector. As the insurance sector is constantly advancing towards customer-centricity, it will need to depend on data analytics and FNOL tools to meet the ever-growing consumer expectations. The main focus on consumer satisfaction should start as early as the First Notice of Loss (FNOL). It is the preliminary report made to an insurance company in case of loss, theft, or damage of an insured asset. It may also be known as the First Notification of Loss.
The insurance division resolves the challenges involved in a claims system and amplify the operations by administering technology-driven products. Applications and tools are being developed, which results in efficiency, consistency, and accuracy. For example, Telematics technology is being implemented to simplify claims procedures. This telematics tool also detects and verifies fraudulent claims quickly.
Earlier, in the FNOL system, the extensive data collection was done manually, which was an expensive, error-prone, and time-taking process. With digital transformation, it has become easy to move the claims process online and extend a more streamlined and upgraded customer experience. A technologically automated FNOL leverages the latest technologies like Machine Learning, Artificial Intelligence, and Robotic Process Automation. This facilitates automated verification of coverage, automatic data prefill, real-time assessment of damage, automated damage estimation and solution, real-time fraud detection, automatic assignment of a loss adjuster, etc.
Large amounts of data are gathered through FNOL, which are analyzed deeply. The outcomes are prodigious, involving improved loss ratio, rapid claims settlement, operational efficiency, heightened agility, and decreased claim in-take expenses. It is foreseen that the future of Claims and FNOL will become more efficient, digitized, and highly skilled.
The omnichannel digital experience, reduced claim volumes, and automated self-serve channels will be the key differentiators in this trend, benefiting both the consumer and the insurance industry. E-FNOL using automation is likely to be delivered in the near future. In the insurance sector, a few developments like customized products, drones, and bots assisting in claims management, super-fast service, and customer-centric business model is expected to happen in the coming days.