Digitally transforming First Notice of Loss (FNOL) has the potential to significantly improve the FNOL experience and benefit both carriers and their customers. By adopting new and improved digital capabilities in this area, P/C insurers have a key opportunity to increase efficiency, accelerate the claims process, reduce costs, and improve customer experience.
The functionality of digital FNOL systems falls into three broad categories: information gathering, communication, and analytics capabilities.
- Information gathering. Mobile FNOL systems can gather intel immediately after a loss through location services, image capture, video capture, and information storage.
- Communication. These capabilities enable insurers and customers to communicate across the entire claims process, with functions like mobile apps allowing for direct connections with claims representatives.
- Analytics capabilities. Digital FNOL can help insurers gain insight into severity estimation through images collected. It can also enable the use of indexing, keywording, and searching both structured and unstructured data.
The evolution of digital claims has led to widespread adoption of mobile FNOL capabilities. As seen in this year’s Novarica New Normal 100: Digital, Data, and Core Capabilities for Property/Casualty and Life/Annuity Insurers (3N100), more than 70% of large P/C insurers indicated that they have some functionality in this area, and 21% indicated that they are piloting digital FNOL systems. Midsize P/C carriers have been slower to adopt these solutions, but more than a third either have or intend to pilot mobile FNOL.
Many vendors are already meeting the digital FNOL needs of carriers through robust messaging and collaboration capabilities. Prominent providers include 360Globalnet, DropIn, Livegenic, Mitchell, SightCall, Snapsheet, Spex, Symbility, Tractable, WeGoLook, and Xactware. In the future, digital FNOL services may allow for a smoother transition to fully automated claims processes as carriers continue to launch and complete legacy transformations. Events that have traditionally required claims handlers are likely to be increasingly performed by customers themselves, and continued digital innovation will provide insurers with an opportunity to further simplify the FNOL experience.
For more on this topic, and to see detailed profiles of prominent digital FNOL providers, read my full brief, Digital FNOL: Key Issues and Prominent Providers.
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