P&C Claims Life Cycle — End-to-End Process 1. FNOL (First Notice of Loss) — Claim Intake  The customer (insured) reports the incident.  Channels: phone, online portal, mobile app, agent.  Key data collected: policy number, date/time of loss, location, description of incident, involved parties. This is where clock starts ticking — the speed and accuracy here sets the tone for the entire claim. 2. Claim Setup & Verification  Validate policy coverage.  Verify if policy was active, limits, exclusions, deductibles.  Assign claim number and adjuster  Potential red flag indicators are also checked for fraud triggers. 3. Investigation  Adjuster gathers facts:  Statements from insured, witnesses.  Police reports, photos, videos  Damage assessments (property inspection, vehicle assessment, third-party evaluations)  Liability determination (especially in Auto or General Liability claims).  Engage third-party experts if required (engineers, medical professionals, appraisers). 4. Evaluation & Estimation  Determine extent of loss.  Apply policy terms and conditions.  Calculate repair/replacement costs.  Estimate total claim value.  May involve negotiations with repair shops, medical providers, or third-party vendors. 5. Settlement Negotiation  Discussion with insured or claimant.  If liability is clear and loss amount is straightforward — fast-track settlement.  If disputes exist — involve legal, arbitration, or even litigation teams.  hired-party claims may include subrogation or contribution 6. Payment Processing  Once settlement amount is agreed:  Deductibles applied.  Payment issued to insured, vendors, or lienholders.  Document everything for compliance & audit. 7️. Claim Closure  File officially closed after:  Full payment is processed.  All paperwork is signed and archived.  Regulatory filings are completed (where applicable).  Post-closure reviews may occur for quality assurance. 8. Recovery (Subrogation & Salvage)  Recover costs from responsible third parties (subrogation).  Salvage damaged property to recoup losses.