Insurers are facing a customer experience crisis. Consumer expectations are evolving rapidly – if insurers can’t keep up, they stand to lose billions in premiums in the coming years. To come out ahead in the digital transformation race, insurers need a digital FNOL process that leverages reflexive forms to streamline the customer experience.
Digital transformation and economic uncertainties are squeezing the insurance industry. Insurance companies need to protect their combined ratios while also appealing to consumers who expect modern experiences in exchange for their hard-earned dollars.
These realities are impacting insurance investment strategies. The Gartner CIO and Technology Executive Survey found that insurers plan to focus more on improving the customer experience and operational efficiencies and less on growing revenue in 2023. In the survey, 68% of respondents said they plan to increase investment in application modernization, making this the most popular tactic of all those named in the survey. Additionally, 41% plan to increase investments in total experience solutions.
Investments in customer experience are absolutely necessary.
Policyholder satisfaction has been falling. In the J.D. Power 2022 U.S. Auto Claims Satisfaction Study, auto insurance claimant satisfaction dropped by 7 points compared to 2021. Many claimants complained they had to repeatedly provide the same information to different people at various points in the claims process. Satisfaction scores were especially low when policyholders had to interact with three or more representatives. Satisfaction rates were higher when straight-through processing technology automatically approved and routed the claim.
When policyholders aren’t satisfied with the claims experience, they have little incentive to stay with the insurance company. Accenture says insurance companies could lose up to $170 billion in premiums over the next five years due to poor claims experiences that cause policyholders to leave.
Policyholders pay for insurance and they expect good treatment if they have a claim. Insurance companies are clearly not meeting these expectations. Instead of navigating a simple process, claimants often have to jump through hoops to report their claims and receive payment. From the point of view of the insurer, the process may seem reasonable. From the point of view of the claimant, however, the process is tedious, repetitive and time consuming.
It's time for a new, digital FNOL process.
The FNOL process is a key step in the customer journey: it’s the point when customers go from policyholders to claimants. Previously, customers have been paying premiums but haven’t required much from their insurance company in return. When they have a claim, they expect to receive their money’s worth in the form of a fast, headache-free claims experience.
With a digital FNOL experience that leverages reflexive forms, this is possible. When you ask the right questions and collect the right data up front, you can reduce friction for the claimant while also eliminating a lot of the backend work for your team.
Reflexive forms are smart, adaptive and hyper-personalized.
A truly digital FNOL process enables the automation of key processes, which results in massive improvements for both the claims professionals and the claimants.
Insurers face multiple challenges.
A digital FNOL process can address all these pain points at once. With Liberate’s SaaS platform, P&C insurers can build fully automated claims processes that deliver superior customer experiences and improve operational efficiency.
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