For insurers the supply chain is a valuable source of innovation which can deliver shorter cycle times and cost reductions, as well as contributing to an overall better customer service experience.
However the complexity and scale of many insurance operations can also cause there to be duplication of activities within the supply chain, miss-communication from information being passed between parties and unnecessary delays whilst these issues are resolved. In the claims space these problems directly impact on a customer’s perception of the insurers brand and renewal prospects.
In claims the notion of First Call Resolution (FCR) is a way to approach the supply chain from the customer’s perspective. When the first notification of loss (FNOL) call or notification is made the customer is looking for clear understanding of what will happen next and when. The claims handler at this point needs to gather all of the relevant information and accurately triage the claim, deploying the right services to resolve the customer’s problems. This critical moment may dictate if the claim moves smoothly through the rest of the supply chain or not.
In some FNOL processes the triage is quite basic and that may prolong the claims cycle. If a damaged vehicle is first assigned to a repair shop, only then to be assessed as a write off, the level of uncertainty for the customer is increased, as is the time to resolve the claim, along with increasing costs to the insurer during this time. By using some of the latest technology tools and combining data sources really intelligent decision making can be achieved, resulting in a much higher level of accuracy and fewer problems and delays down the line.
Integration between supply chain systems is another feature of FCR and ensures that when the initial claim notification is received the customer is given the specific details of next steps e.g. the date, time and location for vehicle repairs because the FNOL system is linked to the repair solution, for example, and similarly for other services. A further benefit of this development is in feeding back information to the customer as the claim progresses. One of the biggest concerns for customers is lack of communication. If something changes in the progress of the claim, like a parts delay, then real time data back into the claims manager ensures all parties are aligned and removes the potential for miss-communication.