Model the claims economics of FNOL automation and adjuster assist.
Built for claims, operations and transformation leaders at carriers and MGAs. Handling cost, straight-through processing, cycle time and leakage in one defensible model.
Your inputs
Benchmarks show typical enterprise ranges — override every field with your own numbers.
All lines in scope for automation
Benchmark: 100k–1M for a regional to national carrier
Adjuster time, intake, document handling and QA
Benchmark: $90–$260 depending on line of business
Low-complexity claims adjudicated without adjuster touch
Benchmark: 25–45% in personal lines
From document AI, summarisation and adjuster assist
Benchmark: 12–25%
Average days between FNOL and closure
Benchmark: 3–8 days
Total claim payouts in scope, used for leakage modelling
Benchmark: Typically 60–75% of earned premium
Points of indemnity avoided through consistent adjudication
Benchmark: 0.3–1.0 points
Document AI, core integration, model governance and change management
Benchmark: $600k–$1.8M
Handling-cost savings plus leakage avoided and cycle-time value.
Directional estimate. Assumes STP claims retain 15% of handling cost for audit and exceptions, and values each removed cycle day at $3.50 per claim.
Three-scenario view
Finance reviewers expect a range. These scenarios flex adoption and implementation cost around the model you entered.
Slower adoption, higher integration effort
Your inputs as entered
Strong sponsorship, clean data, phased scale-up
How enterprise leaders use this model
- What drives ROI in claims automation?
- Three levers compound: intake automation (FNOL capture and document ingestion), straight-through processing on low-complexity claims, and adjuster assist that shortens handling time on the rest.
- How should we model claims leakage?
- Leakage is overpayment from inconsistent adjudication and missed subrogation. Even a 0.5-point reduction on total indemnity paid usually outweighs handling-cost savings, so it is modelled separately here.
- Does faster cycle time have measurable value?
- Yes — shorter cycle time reduces loss-adjustment expense, litigation propensity and inbound status contacts. This model attributes a conservative per-day carrying value to each day removed.
- What is realistic straight-through processing for personal lines?
- Carriers typically reach 25–45% STP on low-complexity auto and property claims within 18 months; commercial lines run lower because of adjuster judgment and coverage complexity.