Digital FNOL
Digital FNOL, or digital first-notice-of-loss, is the digital process of notifying an organization's insurance company when a loss has occurred. The digital FNOL process begins with the detection of a loss and ends with the submission of an insurance claim.
The digital FNOL process can be divided into four stages: detection, preliminary assessment, detailed assessment, and submission.
- Detection: The digital FNOL process begins with the detection of a loss. This is when a digital record is created and stored to document the incident.
- Preliminary Assessment: The digital FNOL process next moves on to the preliminary assessment stage. At this point, enough data has been gathered from digital records, social media sites, and any other sources to determine the type of incident that has occurred.
- Detailed Assessment: The digital FNOL process then moves on to the detailed assessment stage. This is when a more in-depth analysis is conducted to determine the extent of the damage and any potential losses.
- Submission: The digital FNOL process ends with the submission of an insurance claim. This can be done via digital means, such as sending an email or digitally uploading a claim.
Advantages of digital FNOL process
Digital FNOL, when implemented successfully in an organization, can significantly reduce the amount of time and resources needed to report a loss. The digital FNOL process can also provide digital records that can be used in subsequent claims.
Digital FNOL has many advantages over the traditional paper-based FNOL process.
- Digital FNOL can be completed faster, and it is more accurate and efficient.
- Digital FNOL also provides a digital record of the incident that can be used for future reference.
- Digital FNOL improves customer experience by providing an easier and faster way to report a loss.
- Digital FNOL also allows for real-time communication with insurance companies, which can help speed up the claims process.
- By collecting digital data at the point of entry, digital FNOL processes ensure accuracy of the data for analytics, helping organizations improve their performance
Disadvantages of digital FNOL process
Disadvantages of digital FNOL stem mainly from bad or improper implementation. If a digital FNOL is not implemented correctly, it can lead to inaccurate data, which can then lead to incorrect decisions during the preliminary and detailed assessments stages.
Digital FNOL also requires a certain level of technical expertise in order to be used effectively. If an organization does not have the necessary resources, they may need to outsource these services
Another disadvantage is that digital FNOL can be more expensive to implement initially.
Digital FNOL might not work in all areas, or with all demographics, especially where digital records are not readily available or digital communication is poor, or insured are not technically savvy. Therefore digital FNOL must be optional, not mandatory for some insurance services and companies.
Digital FNOL is not always suitable for every organization, or for all types of insurance services, due to its reliance on digital transformation, digital infrastructure and digital communication between an insurer and an insured.
However, as long as it is implemented correctly, digital FNOL does have many significant advantages over the traditional paper-based FNOL process, including reduced processing time and a more accurate digital record of the damage caused by the loss.
