When a customer uploads an outdated version of forms or ones with missing signatures, the agents experience an interrupted workflow because they have to re-evaluate these forms for the accuracy of the seeded information. Such paperwork errors can affect productivity and company ROI. Why? Because claims or applications featuring Not In Good Order (NIGO) documents halt form processing and place a premium on agents to manually chase their applicants to fix these errors, leading to inevitable business costs.
Policy servicing and catering to various change requests often involve processing multiple manual forms, letters, and other correspondence in traditional insurers. As per available data, 40% of these documents include errors leading to NIGO forms that disrupt workflows, causing SLA breach, TAT non-adherence, and other compliance issues. Insurance carriers have no choice but to seek more information from the customer to address NIGO issues, increasing the cost of per-policy servicing.
The main scenarios for NIGO errors are:
- Agent initiating the request on behalf of the customer
A significant number of customers of traditional carriers are not aware of the process of policy service requests. As a result, customers prefer to talk to their agents/field representatives and get their requests processed directly. This forces agents/field representatives to spend a significant amount of time addressing customer issues and initiating such requests. Often they turn to the customer representative (contact center) to address complex requests on behalf of their customers.
- A customer uses self-service or manual options to initiate a service request
Customers often do not receive adequate help or are unaware of the assist features required to ensure that the forms are error-free. They seek extensive support from customer representatives on even simple requests leading to repeat queries, error-prone requests, and a negative customer journey. Social media is full of such examples of customers venting their displeasure at the complexity of processes and lack of information.
Explaining the problem
While creating a significant impact on the field and customer representatives, both the above scenarios also generate negative customer experiences due to the complexity of the process. It makes potential new customers think of perceptional inefficiencies, which affect the entire insurance value chain.