Deploying the First Notice of Loss as a Customer Experience Opportunity

Annmarie Geddes Baribeau on June 21, 2017


In an environment where competitive pricing and internet sales are challenging customer retention, forward-thinking auto and home insurers are effectively using the First Notice of Loss as a customer experience opportunity. Creating positive customer experiences not only improves loyalty, but can also convert customers into brand advocates.

Successful personal lines insurers recognize that the First Notice of Loss (FNOL) is more than the first critical step in the claims process. Since poor claims service is a key reason why consumers leave their insurers, setting a tone of clear and responsive communication encourages positive customer experience.

Too many home and auto insurers, however, are yet to address perennial customer communications challenges despite making great investments in streamlining the claims process.

Generally, claimants have and will always prefer insurance companies that offer empathy, efficiency and a roadmap of what to expect throughout the claims process. They also desire reassurance as well.

Insureds also want to know that reporting a loss means their automobile and/or home insurer will respond as soon as possible. The FNOL is the first opportunity to offer customer assurance. This helps prevent claimants from feeling

that their insurance company is not taking care of them, which is where negative customer experience can begin. Avoiding such frustration not only encourages retention, but also saves money and discourages litigation.

There are also ways customer desires are changing. Generally, customers want to hear more from their insurers through every step of the customer journey -- especially during claims process. To provide personalized service, future-forward insurers are inviting their customers to choose how they hear from them.

Home and auto insurance companies that are offering customers the option to hear back from them via text message, email or phone call demonstrate the commitment to customer experience enhancing responsiveness. Offering these options through the FNOL acknowledges the customer while boosting the claims process. During this critical step, insurers can give claimants the option to receive messages via text, email or phone call.

SPLICE’s personal lines insurance clients are finding that a critical mass of clients will choose automated voice or text options for short pieces of communication. These cost-saving and more efficient methods allow claims staff to contact customers as the situation demands.

Competitive pricing is straining customer retention and loyalty for auto and home insurance companies. While greatly improving the claims process, many insurers are missing out on using the First Notice of Loss as a customer experience opportunity. Connecting customers into the claim process through their channel of preference can bolster customer experience – and loyalty - even more.