FNOL efficiencies grow with data enrichment

Claims directors have sought to enhance their claims processes for several years – not just to cut costs but to support a better experience that could make a crucial difference at renewal. As technology advances, however, and the ways of delivering the claims experience evolve, there is a careful balancing act needed between efficiency, effectiveness and keeping the customer front of mind, all while seeking out fraudulent behaviour.

Apps, connected devices, and cars are developing at pace, all providing new methods of supporting first notification of loss. For example, electronic notification of loss enables customers to log the incident themselves via an app or website. An ENOL capability is now seen as a ‘ticket to play’ rather than a differentiator. However, it’s still common to see a slick front-end offering masking a lack of integration with back-end systems, requiring claims handlers to re-key information. This is when mistakes can creep in due to human error.

There may also be gaps in the information provided by the customer via ENOL, thus requiring claims handlers to re-confirm details. Efficiencies gained at the start could be lost with this second notification of loss, as it creates a further operational cost to the insurance provider and can create friction with the customer.

The emergence of self-service and automated methods of FNOL can help reduce claims handlers’ time, smooth the process for the customer and expedite claims. But they are just the start of the claims journey, and more information is needed to speed claims settlement and help protect the insurance provider from fraud when the insurance market needs to be on high alert due to the cost-of-living crisis.

Considerable potential

There is considerable potential in connected devices such as a home security system, escape of water detectors or vehicles that could allow for device notification of loss, feeding a report of the incident directly to the insurance provider. Factor in the rise in dashcam usage, and ‘Cam-NOL’ could become more common – alerting the insurance provider to the incident and delivering footage surrounding the event.

Mobile notification of loss is also a firm feature of the claims landscape, with smartphones and smartwatches detecting and alerting insurance providers to an event such as a car accident. We also need to consider the potential of virtual assistants to log a claim. The launch of smart devices being pre-integrated into vehicles may mean this comes sooner than expected.

Why not use validated data to answer some of the questions usually put directly to the customer at FNOL? This could start with data confirming the person's identity, prior claims and policy history, and help identify any links to fraud since the policy was incepted

So, to maximise the advances being made in FNOL notifications, it could make sense to look at the picture of the risk insurance providers are building at quote stage and apply the same approach to claims. Why not use validated data to answer some of the questions usually put directly to the customer at FNOL? This could start with data confirming the person's identity, prior claims and policy history, and help identify any links to fraud since the policy was incepted.

There are significant opportunities to expedite a home insurance claim using data enrichment at FNOL. Data could be retrieved to confirm key details such as prior claims related to the home – what happened, when and how much the claims settlement was for. The emergence of market-wide claims data for home and motor could even be used to confirm claims that occurred prior to the customer living in the property, such as claims related to flood, fire or subsidence.

Digitalisation improves information accuracy as it removes the element of human error, speeding up the FNOL process while removing some of the burden on the customer to provide the basic information or even information they may not know. The same approach could apply to a vehicle claim with data injected at FNOL confirming the make and model of the vehicle and the presence of any advanced driver assistance system fitments. The most recent MOT could be verified along with an accurate valuation and the current mileage ,as well as the claims history of the vehicle and the owner.

Data enrichment is already pretty much standard practice at point of quote. After all, the more you know about your customer, the better you can segment, price, and compete effectively. Apply the same principle to FNOL and insurance providers not only have a chance of delivering a faster and simpler claims journey, that should pay off at renewal time, but have much to gain in improved efficiencies and fraud detection rates.

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