4 ways to improve your first loss notification experience

It’s a busy time of year for the property and casualty insurance industry. Already on the rise, car claims were only exacerbated by summer travel. And the CAT season is underway in most parts of the country, which may lead to an influx of applications in the affected areas. For carriers looking to provide a positive customer experience during this stressful time, here’s an important reminder: In claims, first impressions count.

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 ordered a independent survey of 800 U.S. adults who filed for home, condo or auto insurance 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 that FNOL directly affected their overall satisfaction with the claim.

With so much at stake during this initial interaction, what can carriers do to improve their policyholders’ FNOL experience? Here are four tips based on the survey results:

1. Prioritize voice communication

One of the most significant findings of the survey is that complainants prefer to use their voice when making their initial report. More than half (51%) of respondents reported their claim through a phone call to their insurance carrier, and another 17% reported through their agent, possibly over the phone as well. This preference suggests that claimants want to share their story in their own words rather than fill out a generic form. Given that accidents are inherently stressful, carriers should aim to make FNOL as simple 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 short

The length of the initial FNOL conversation can have a significant impact on overall satisfaction with the claims process. When the initial reporting conversation lasted less than ten minutes, only 7% of respondents felt it negatively affected their satisfaction. In contrast, when the conversation extended beyond 20 minutes, the dissatisfaction rate nearly tripled to 19%. To improve the FNOL experience, carriers should prioritize fast, seamless interactions that efficiently collect all necessary data and set clear expectations.

3. Minimize upfront steps to simplify the claims process

A seamless complaints journey with fewer steps is critical to improving FNOL and overall satisfaction. The survey showed that policyholders who only had to tell their story once were much more satisfied with their claim experience. Carriers should focus on capturing all essential information during the initial FNOL interaction to reduce the number of times claimants have to repeat their story and the number of people involved in the claim process. By streamlining the process and minimizing redundant steps, carriers can improve the overall claims experience.

4. Enable photo and video sharing

The ability to share photos and videos during the initial FNOL report can simplify the entire claim process. According to the survey, 54% of respondents had to work with two to three people during their application and often had to repeat basic details multiple times, creating a poor customer experience. However, those who could submit photos and videos with their initial report were more likely to share their incident details just once. The ability to provide adjusters with visual evidence in advance enables more accurate triage of the claim and reduces the need for claimants to repeat themselves and ensures they are connected early with the appropriate adjuster or department. This leads to higher satisfaction, with 50% of claimants who could submit photo and video reports being very satisfied with their overall claim experience.

The FNOL process is a critical point in the claims journey that can have a significant impact on overall satisfaction. It is also one of the most stressful and emotional times for the insured, occurring when the accident, loss or weather event is fresh. By prioritizing voice communication, keeping initial conversations short, allowing sharing of photos and videos, and minimizing upfront steps, carriers can set a positive tone for the rest of the claims process—and hopefully turn a negative life event into the best experience possible .