How to increase NPS with FCR

How to increase NPS with FCR

As a Chief Claims Officer, you undoubtedly have certain important KPIs to meet. Apart from claims handling cost, there are two other significant KPIs for most professionals in the insurance industry: FCR (first contact resolution) and NPS (net promoter score). However, some still believe that quick, no-touch claims could damage NPS. That couldn’t be further from the truth.

High FCR rate = effectiveness for all

FCR is the optimal way to measure claims administrators’ effectiveness and is an essential KPI for the insurance industry. When you solve claims on first contact, it’s beneficial to both your company and policyholders. Because today, many insurance customers assume their insurance claim will be a hassle. Thus, when companies can solve a case quickly, they will often not only meet but exceed customer expectations. 

Even more so, it’s a win-win-win situation. Your claims adjusters surely appreciate tools that help them solve claims without long and ineffective processes that could result in a discontent customer. As a result, customers, companies, and claims adjusters share the same interest: a high FCR rate means effectiveness for all.

Slowness damages relationships

Let’s be honest, the most critical KPI is the NPS. It’s the most important competitive instrument between insurance companies, and it’s been so for a long time. Generally speaking, the insurance industry has quite happy customers. But as digitization and modernization increase, so do customer expectations.

If you think about it, everything, from ordering online to banking errands, is now happening at rapid speed. And a slow process will surely damage the relationship between company and customer. For example, studies show that NPS fell remarkably when bank customers applied for an account and the process took more than 20 minutes.
Modern humans pressure their vendors to improve, and failing to meet demands will make people switch to more straightforward offers. To stay loyal as customers, people also want to feel like they have a close, transparent relationship with their insurance company.

No more pen, paper, and calculators

Our industry has historically lacked adequate tools to handle claims quickly. Some companies have come a long way with digitization, while others are still working with pen, paper, and calculators. There’s a massive interest in automated claims worldwide, but more needs to be done by those who don’t wish to be overtaken.

We’re entering a new time of insurance. What was acceptable yesterday won’t cut it today, and certainly not tomorrow. As a company, you’re expected to deliver a modern process and user experience. If you want to maintain NPS, you have to keep up with how the market develops.

Give the people what they want!

Customers don’t want to spend their time in the phone queue, waiting to be served. They want solutions, i.e., to handle their claim at their convenience. And if there’s already technology that makes it possible for customers to manage their claim and get reimbursed in just 10 minutes, why not offer them that?

Step into the future

All insurance policies should be based on treating policyholders correctly and fairly. There can never be a risk of reimbursement differing based on name, gender, ethnicity, or behavior, so claims valuation must be consistent and unbiased. An objective assessment is a fair assessment made possible by data-driven claims automation. In addition, you can use the data derived from claims automation to improve pricing and product development.

With this in place, your company bases decisions on the analysis of thousands of data points. And when you handle straightforward claims automatically, your claims adjuster can spend their time on more complex cases where the human touch is indispensable and where they can fully use their skills and experience. 

As you can see, FCR and NPS go hand in hand. With automated claims processing, customers handle their claims at their convenience, any time, and anywhere. Now is the perfect time to ditch old solutions and switch to effective, transparent, and data-driven work procedures.

But don’t make it any harder than it has to be. The important part is to get started and not aim for one single total solution. Instead of doing everything at once, you can make certain implementations and alterations and then scale up – step by step.