Throughout 2015 and 2016, the Canadian Collision Industry Forum (CCIF) has led the first ever collaborative project of auto insurers and repairers focused on advances for the industry and consumers. The initiative will streamline a portion of the pre-repair claim process to improve customer experience and industry productivity. With a focus on the First Notice of Loss Assignment, the CCIF has brought together leading repairers and insurers to drive substantial improvement in customer satisfaction, number of rental days and total days from accident to return to the customer. For the industry, the goals are to get the car in faster and out faster, and reduce the need for calls and emails throughout the process. For repairers, a reduction in non-productive labour is a vital objective.
September 2015 Milestone
In an exciting development, five of Canada’s leading automobile insurers agreed to 18 items that will form the basis of a common FNOL assignment to repairers. Building on multiple industry meetings and individual discussions with 10 insurers and repairers representing 60% of collision repairs, CCIF secured the agreement in a September 9, 2016 meeting held in Toronto. Since the agreement, other insurers have indicated their intention to adopt the shared 18 items listed below as discrete fields in their FNOL assignment to repairers.
While all insurers will continue to maintain individual approaches to the First Notice of Loss, participating insurers will adopt all of the critical items listed below as separate fields as system changes permit. This is a major milestone to improving the collision claim and repair process for customers and the industry.
January 2016 Milestone (Audatex Customers)
Audatex collaborated with 3 major insurers from the September 2015 meeting to define a standard approach to the previously agreed 18 critical FNOL items to be presented in the assignment to repairers. Once completed, all repairers will see a nearly identical first page of the assignment form from Audatex insurance customers. Other company and claim specific items will still be present below the standard items.
All Audatex customers now have the option to adopt the new approach, and Audatex is working directly with each client to discuss possible changes to the assignment screen and process prior to implementation. Many of the suggested changes will stem from EAI and process changes residing with the insurance companies that are then passed on to Audatex. Those insurance companies choosing not to adopt the new approach will see very minor changes to the current assignment, with an example being “Claim Rep email address”.
Audatex customers wishing to move to the new standard should contact Audatex directly.
Two major Canadian insurers have completed the changes to fully adopt the 18 agreed items as their FNOL assignment view. Both insurers are transmitting to collision repair shops under the new approach and measuring the impact.
May 2016 Milestone
Preliminary evidence from participating insurers indicates good early results using the standard 18 FNOL items as their first page assignment view to insurers. While a more formal measurement of the new system is underway, participating major insurers are reporting that by streamlining the FNOL to reflect only the data required to facilitate the commencement of repairs they have realized real benefits already:
- Easier to train new staff on the requirements to generate the appraisal request
- Less phones into the call center as the shops have all the information to start the repairs
- Less calls from staff and independent appraisers as they have the required information to do their jobs
- System integrations have been simplified as only 18 items need to be scraped or pointed to the assignment
- Simplified audit/quality assurance as the forms are now aligned with FNOL requirements
- Expedited customer service turnaround time as we ask the same questions in the same order
Mitchell is actively participating with the AIA to find a similar solution for their customers. We hope to have more information to follow for Mitchell customers as soon as possible.
We have a new project underway to measure the impact of the changes to the FNOL assignment. The primary objectives of this project are to:
1. Ensure that the actual measurable outcomes of the FNOL harmonization efforts are measured against a pre-implementation baseline with a focus on the original promised results:
- Reduction in average rental length by one day
- 10% decrease in shops’ non-productive labour
- 10% increase in shops’ net promoter score
2. Track and report insurer implementation of agreed FNOL standard fields and encourage faster and more thorough insurer implementation